BSP strengthens rules for bank officials
Credit to Author: Anna Leah E. Gonzales| Date: Wed, 01 Jan 2020 16:15:38 +0000
The Monetary Board of the Bangko Sentral ng Pilipinas (BSP) recently approved the revised rules on disqualification of directors and officers of banks and quasi-banks.
In a statement on Wednesday, BSP said the new rules expanded the grounds for disqualification in a bid to further strengthen the quality of governance in the financial services industry.
“The policy clarifies that persons who caused undue injury, material loss or damage to the bank or those who exposed the bank to higher risk or danger shall be disqualified from becoming a director or officer in other BSP-supervised financial institutions (BSFIs),” the BSP said.
The central bank said the Monetary Board also approved the inclusion of dismissal from any government institution, conviction for offenses under the amended charter of the Philippine Deposit Insurance Corp., and delinquency or unwillingness to settle obligations as among the grounds for disqualification.
“In order to promote transparency and ensure that persons concerned are accorded with due process, the revised policy sets out the disqualification procedures that will be followed,” it said.
“The procedures provide a window for the person concerned to explain his side and present evidence to support his position. Once a person is disqualified, his name will be included in a watchlist database and he can no longer be connected in any BSFIs unless his name is removed from the said list,” the BSP added.
BSP said the revised rules complement rules for directors/trustees and officers of BSFIs covered by Circulars 969 and 970 both dated Aug. 22, 2017.
The circulars contain enhanced corporate governance standards for the board of directors and officers, and set their key roles and responsibilities.