New BSP rule seeks to strengthen rural banks’ IT risk management

The Monetary Board (MB), the policy-making body of the Bangko Sentral ng Pilipinas (BSP), recently issued a resolution that will enhance the risk management facility of rural banks in the face of the ever-evolving world of technology.

Under Resolution 1286, the MB approved the issuance of the enhanced Information Technology Risk Management (ITRM) framework, which updates existing IT-related Guidelines in Sections X176 and X705 of the Manual of Regulations for Banks (MORB). Apart from all types of banks, the resolution shall likewise cover nonbank financial institutions, electronic money issuers and other nonbank entities that are subject to BSP supervision and/or regulation.