THE country’s second largest bank in terms of assets has been sanctioned by the monetary authorities over the P1.75 billion fraud allegedly perpetrated by one of the bank’s officers.
The Bangko Sentral ng Pilipinas (BSP) said its policy-making body approved the imposition of sanctions on Metropolitan Bank and Trust Co. (MBTC) or Metrobank following the examination it conducted relating to the fraud incident.
“The sanctions imposed ranged from reprimand to suspension of directors and officers who failed to perform adequate oversight and/or have been complacent/remiss of their duties and responsibilities,” it said in a statement released on Tuesday.
Metrobank was also required to allocate about P4.45 billion of its capital on a consolidated basis to cover for higher operational risk.
The requirement is subject to periodic review and would be lifted when the bank is determined to have put in place adequate risk control measures to address the weaknesses noted, according to the central bank.
“MBTC was also required to execute and submit a Letter of Commitment, to be implemented and completed within one year, to enhance corporate governance, credit administration, internal controls and audit, risk management, and customer on-boarding and monitoring processes,” it added. MAYVELIN U. CARABALLO