BSP urges corporate training for bank execs

MANILA, Philippines–The Bangko Sentral ng Pilipinas has called on banks to have their board directors undergo training on the updated rules on corporate governance.

The BSP said an enhanced education on proper management behavior will be crucial in curbing cases of bank failures in the future.

BSP Deputy Director Nestor Espenilla Jr. said banks are not actually required to provide such training to their executives, but they are strongly urging the banks to do so.

“The [banking] industry must recognize that a key area for improvement is in the matter of better governance,” Espenilla said on Monday during a forum on banking organized by the Rural Bankers Association of the Philippines where he served as keynote speaker.

“We will be pleased if more directors would undergo the refresher course on good corporate governance,” Espenilla told reporters at the sidelines of the forum.

The updated training course will cover new rules on corporate governance that the BSP issued earlier this year under Circular 749, Espenilla said.