As part of the Bangko Sentral’s commitment to continuously strengthen corporate governance in all of its’ supervised financial institutions, Circular 749 has been amended in accordance with Resolution No. 625 of the Monetary Board. This is also to harmonize the existing BSP guidelines with those of the Principles for Enhancing Corporate Governance issued by the Basel Committee on Banking Supervision. These amendments are specifically on subsections of the MORB on Definition and Limits, Qualifications of a director and, duties and responsibilities of the board. Some of the subjections are likewise renumbered, such as Subsection X142.3, X174 to x176.
For the Limits on the number of the members of the board of directors, which is stipulated under Section 1 of said circular, kindly take note that the non-executive members of the board refers to those who are not part of the day to day management of banking operations and shall include the independent directors. Same section also states that in the case of a bank/ QB/ trust entity merger or consolidation, the number of directors may be increased up to the total number of the members of the board as provided by the bank’s Articles of Incorporation. Section 2 meanwhile includes the expanded yet specific duties of the board of directors such as the monitoring of strategic objectives and creation of committees to increase efficiency.
To view the complete amendments and renumbered sections, kindly download from our slideshare file below.