The Monetary Board (MB) of the Bangko Sentral ng Pilipinas (BSP) recently approved the amendment to the regulations on confirmation of the election/appointment of directors/officers with rank of senior vice president (SVP) and above of banks so as to simplify the confirmation procedures. The confirmation requirement is pursuant to the mandate under Section 16 of the General Banking Law for the MB to prescribe, pass upon and review the qualifications of individuals elected or appointed bank directors or officers and disqualify those found unfit.
Under the revised rules, repeat confirmation for directors and officers with rank of SVP and above will no longer be required in cases of re-election of a director within the same bank/banking group, re-election of an independent director within the same bank/banking group, and promotion of an officer to a position other than that which requires prior MB approval (e.g. compliance officer and trust officer), or a different set of minimum qualifications (e.g., internal auditor, security officer and FCDU Head), or a different confirming authority, in the same bank/banking group. Banks, shall, however, continue to notify the BSP of such re-election/promotion of a director/officer.
The BSP regulations on the confirming authority are retained. For directors and SVP and above of universal/commercial banks and thrift banks, rural banks, cooperative banks and Islamic banks with at least P1 billion assets, the confirming authority is the MB, while for thrift banks, rural banks, cooperative banks and Islamic banks with below P1 billion assets, the confirming authority is an SES Committee.
The “no repeat confirmation” shall be subject to the conditions that the director/officer concerned has been previously confirmed or previously approved by the MB, or if previously confirmed by the SES Committee, his/her re-election/promotion/transfer within the banking group requires the same level of confirming authority. Furthermore, the director/officer concerned must have had continuous service within the same bank/banking group.
Above exemptions from repeat confirmation shall apply to directors/officers confirmed by the MB/SES Committee starting 1 January 2011. The above exemptions shall also apply to directors/officers of quasi-banks, non-bank financial institutions with trust authority and trust corporations.
In addition, the MB approved the deletion of the requirement for banks to submit to the BSP the bio-data of officers below the rank of SVP. In lieu thereof, banks should keep a complete record of the bio-data of all directors and officers and make available the said bio-data during on-site examination or when required by the BSP for submission for offsite verification.