The Bangko Sentral ng Pilipinas is requiring all bank directors to undergo training on the principles of good corporate governance.
In a memorandum, the BSP reminded banks of their responsibility to continually strengthen their governance systems by, among others, having their board directors undergo the basic course on prudent practices in dealing with stakeholders.
“Good corporate governance is the underpinning of safe and sound banking operations. Hence, it is important that the tone of good governance emanates from the top,” the BSP said in a note attached to Memorandum Order 26-2012.
The BSP will be holding the basic course on the subject but it will tap a third party to conduct the good corporate governance training for bank directors.
“The board of directors should embody and nurture the principles of governance in carrying out their duties and responsibilities,” the BSP said.
Earlier this year, the BSP issued circulars that update the rules on good corporate governance to be consistent with the standards pushed by the international community.
One of the new rules requires banks to have at least 20 percent of their board seats occupied by independent directors. Another is the appointment of a compliance officer who will be in charge of ensuring a bank’s compliance with good corporate governance and other banking regulations.
BSP Governor Amando Tetangco Jr. earlier said highlighting the need for sound governance systems in banks at this time when the Philippine banking sector was sound and stable was deemed prudent.