Corporate governance standards raised by MB

Bangko Sentral-supervised financial institutions will have to shake up their boards and senior management under new governance guidelines approved by the Monetary Board.

“The policy change, which is anchored on the fundamental principle that the tone of good governance should come from the top, sets out enhanced requirements on the membership composition of the board. This is aimed at ensuring that the board of directors is comprised of a collective mix of individuals who possess the expertise and competence to effectively manage the financial institution,” the Bangko Sentral ng Pilipinas (BSP) said on Tuesday.