PH banking system still strong amid challenges: Diokno

In a Viber message, Diokno reiterated that monetary officials are now “looking at the alleged non-reporting of a universal bank of DOSRI (directors, officers, stockholders, and their related interest) loans”. (File Photo: Department of Budget and Management/Facebook)

MANILA – The country’s banking sector remains robust despite the challenges posed by recent news about the alleged anomalies in a loan extended by a major bank, Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno said Friday.

In a Viber message, Diokno reiterated that monetary officials are now “looking at the alleged non-reporting of a universal bank of DOSRI (directors, officers, stockholders, and their related interest) loans”.

“Consistent with investigation procedures, the BSP is investigating the complaint against the bank. The BSP’s ongoing investigation is expected to be concluded soon,” he said.

He earlier said the BSP received a complaint against officers of an unnamed bank last June 3 regarding their alleged involvement in an “illegal and unreported” loan amounting to PHP4 billion extended through the DOSRI mode.

DOSRI loans should be approved by a bank’s board of directors to ensure that rules are implemented in accordance with BSP regulations.

“The BSP has fortified its rules on DOSRI to deter any opportunistic acts of directors, officers, stockholders and related interests (DOSRI) of banks,” Diokno said.

“DOSRI rules are strictly enforced and violations of such rules are serious in nature and are not treated lightly by the BSP,” he added.

He said the country’s banking system “remains fundamentally sound despite the challenges over the years.”

“2020 proves to be no exception despite the (coronavirus disease 2019) pandemic. The banking system is sound and resilient due to strict implementation of banking regulations,” he added.