BSP wants stricter policies vs erring bank personnel

The Bangko Sentral ng Pilipinas (BSP) is looking to require its supervised financial institutions to have a policy in determining the process and criteria on when to file legal cases against erring personnel, including dismissed directors, officers and employees.

- KEISHA TA-ASAN

In a draft circular posted on the central bank website, the BSP said the proposed changes would amend relevant sections of the Manual of Regulations for Banks and of the Manual of Regulations for NonBank Financial Institutions.

"This aims to reinforce measures, including filing of legal cases, to deter misconduct and promote discipline in BSP-supervised financial institutions (BSFIs) for the protection of the depositors and other financial consumers," the central bank said.

According to the BSP, the board should set up a tailored policy consisting of the process, procedures, guidelines and criteria on filing of legal cases against erring and dismissed personnel.