BSP sets supervisory action on banks for operating glitches

The Bangko Sentral ng Pilipinas will decide within this month what supervisory action to slap against BDO Unibank Inc. and Bank of the Philippine Islands for the glitches from alleged data security breaches that paralyzed their services recently.

BSP Deputy Governor Chuchi G. Fonacier told reporters Friday that they already finalized the reports on the two incidents, but she declined to give details as the recommendations would still be up for the Monetary Board’s consideration.

Fonacier, who oversees the BSP’s supervision and examination sector, admitted that it took them quite a while to finish the reports.

“It’s really difficult… Of course, you’d be very careful in determining the involvement aspect of the employees as well as the banks,” she explained.

Fonacier said they were targetting to present the reports to the Monetary Board, the BSP’s highest policymaking body, in the next two weeks or before October ends.

“The Monetary Board will be reviewing them and considering the actions to be taken against the people as well as the institutions,” Fonacier said.

“As I was saying, there will be supervisory action both on persons as well as against the banks,” according to Fonacier.

The BSP official said the supervisory action would be either monetary or nonmonetary penalties. For nonmonetary, “there’s a range—it could be a warning, reprimand or suspension of officials,” Fonacier said.

“There’s that menu of supervisory action that the BSP can take, but as of now I cannot disclose what will be in that menu pending Monetary Board consideration,” she added.—BEN O. DE VERA