To all rural bankers, pleased be informed of the recently issued Circular 749 or the approved Guidelines in Strengthening Corporate Governance in BSP supervised Financial Institutions. Pursuant to Resolutions 111 and 227 of the Monetary Board, the 29-page circular stipulates the amendments on the Manual of Regulations for Banks under Subsections X141, X142, X174 to x177.
One of the new entries under X174.a is on the appointment of a Chief Risk Officer or any equivalent position who is independent from executive, operation and revenue-generating functions and, business line responsibilities. While this new provision primarily targets commercial and universal banks, rural, thrift and cooperative banks may appoint a CRO or any equivalent position, but shall be subject to the same requirements applicable to CROS of KBs and UBs.
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