BSP bars bank execs from holding concurrent posts
06/18/2011 | 12:42 AM
Bank executives are now prohibited from holding multiple positions in the banks that employ them, according to a new circular the Bangko Sentral ng Pilipinas released Friday.
Circular 725 also stops bank officers from occupying concurrent positions in their banks’ foundations and microfinance institutions.
BSP Gov. Amando Tetangco Jr. said the Monetary Board issued the new rules because “a concurrent officership in different financial institutions may present more serious problems of self-dealing and conflict of interest."
Tetangco also stated in the circular that multiple positions “may result in poor governance and unfair competitive advantage."
The circular clarified that “secondment" must be a “transfer/detachment of a person from his regular organization for temporary assignment elsewhere where the seconded employee remains the employee of the home employer, although his salaries and remuneration may be borne by the host organization."
Circular 725 prohibits bank officials from holding officership or getting involved in the daily microfinance operations of related non-government organizations (NGOs) and foundations.
Bank executives who happen to now be in these prohibited concurrent positions have been given until Sept. 30 this year to relinquish their concurrent posts or be disqualified from their present positions if they fail to comply.
The new circular also sets rules on the deposits of related NGOs and foundations in related lending banks. Among others, the depositors are now required to issue confidentiality waivers and enter into “hold-out agreements" with their banks. — Earl Rosero/VS, GMA News
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CARLOS ANI - SEEDFINANCE Corporation - http://www.seedfinance.net
Email: carlosani@seedfinance.net
Landline: +63495010127 Cellphone: +639152919580
DEVJOBS - http://www.devjobsmail.com
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