Bank directorship rules eased

Requirements for aspiring bank directors have been relaxed to allow prominent figures to skip routine corporate governance workshops before their appointments, regulators announced this week.

The Bangko Sentral ng Pilipinas (BSP) on Monday unveiled amendments to the minimum qualifications for bank directors.

Banks are required to seek the BSP’s approval before naming anyone as new directors. Before anyone is named a board of director, the person must first attend a special corporate governance seminar conducted or accredited by the BSP.

This requirement ensures that local banks, which safeguard the public’s money, are run properly.

Under rules released this week, new exemptions were added for people with certain stature in Philippine society and the local business community.

Among those exempted are “Filipinos with recognized stature, influence, and reputation in the banking community and whose business practices stand as testimonies to good corporate governance.”

Also exempted from the corporate governance seminar requirement are locals or foreigners that served as senior officials in central banks or other financial regulatory agencies. This include former members of the Monetary Board.

Former Supreme Court Chief Justices were also granted the same exemption. The same exemptions also apply to nonbank financial institutions supervised by the BSP.

Other requirements for bank directorship include passing the BSP’s so-called “fit and proper” rule. This says that officials must be able to prove their worth as possible bank directors, based on integrity, physical and mental health, competence, financial literacy, diligence and experience, among others.