‘Arm’s-length deals a must for PH banks’

The central bank’s Monetary Board has ordered all banks to strengthen their oversight over related party transactions (RPTs), making their boards responsible for ensuring that such deals be made on an arm’s length basis.

Fairness across all financial transactions is necessary given that the local banking industry is largely composed of firms that are either part of a conglomerate or a family-owned business network, the Bangko Sentral ng Pilipinas (BSP) said on Tuesday.