|Name of Institution||Land and Agricultural Development Bank|
|Year of Establishment||Jan 1970|
|Background Information||Land Bank is a specialist agricultural bank guided by a government mandate to provide financial services to the commercial farming sector and to agri-business and to make available new, appropriately designed financial products that would facilitate access to finance by new entrants to agriculture from historically disadvantaged backgrounds.
Land Bank does not receive any financial subsidy from the government but gets its money from the money markets. It competes with other financial institutions to lend money from the markets which it then on-lend to clients at market related interest rates. However, because Land Bank does not pay tax and dividend to the government, it uses the money that could have been used in those instances to support development. In 1995, then President Nelson Mandela appointed the Strauss Commission of Inquiry on Rural Finance. The Commission was to look into the transformation of Land Bank with a view of making it more accessible to all South Africans. Stressing the need for the Bank to serve a much broader spectrum of clients, the Strauss Report also emphasised that rural development should not be based on a scaled down version of traditional commercial farming, but on far-reaching innovation. This has involved the development of unique products to provide world-class service and delivery at competitive rates.
Since its inception in 1912, Land Bank has undergone various phases of transformation. With recommendations of the 1997 Strauss Commission's Report into Rural Finance, Land Bank has a new mandate-to deracialise the agricultural sector and bring on board farmers from previously marginalized groups to the mainstream of South Africa's agricultural sector.
The Land and Agricultural Development Bank of South Africa trading as Land Bank, is a parastatal that has working relations with the Ministry of Agriculture and Land Affairs. A Board of Directors that reports to the Minister of Agriculture and Land Affairs governs the Bank. The financial statements of the Bank are reviewed annually by the Auditor General and are presented to Parliament by the Minister.|
|Type of Institution||Universal bank|
|Short Name/Acronym||Land Bank|
|Type of Banking License||Under special law|
|Percentage of Government||100%|
|Address||192 Visagie Street, Tshwane P.O. Box 375|
|Telephone||192 Visagie Street, Tshwane P.O. Box 375|