Sanctions to be imposed for equity investments made without prior Monetary Board approval
CBP CIRCULAR NO. 1366 Series of 1992
The Monetary Board, in its Resolution No. 987 dated October 16, 1992, approved the amendment of Section 1383 of the Manual of Regulations for Banks and Other Financial Intermediaries to include the following sanctions to be imposed for equity investments made without prior Monetary Board approval:
"1. First Offense
Bank — If the investment is not allowable under existing regulations, divestment of the investment. Officer/Director — Reprimand on officer/director who recommend/approved the investment.
"2. Subsequent Offense
Bank — If the investment is not allowable under existing regulations, divestment of the investment. Officer/director — Monetary penalty of P10,000 on each officer/director, P20,000 for the members of the Board and at the same time Executive Officers, who recommend/approved the investment, per investment and to be shouldered personally by the officer/director.
If the subsequent offense is an investment in a non-allied enterprise:
Officer/Director — Monetary penalty of P20,000 on each officer/director, P40,000 for the members of the Board and at the same time Executive Officers, who recommend/approved the investment, per investment and to be shouldered personally by the officer/director."
This Circular shall take effect immediately.
JOSE L. CUISIA, JR. Governor
More in BSP Circulars
- Amendments to the rules and regulations to govern investments in all debts securities and marketable equity securities. Accordingly, Books I, II and IV of the Manual of Regulations for Banks and Other Financial Intermediaries(BSP Circular No. 161)
- Issuance of the new Financial Reporting Package (FRP) for banks in line with the adoption of the Philippine Financial Reporting Standards (PFRS) and Philippine Accounting Standards (PAS)(BSP Circular No. 512)
- Enhanced Guidelines in Strengthening Compliance Frameworks(BSP Circular No. 972)
- Loans of exporters to the extent guaranteed by the Guarantee Fund for Small and Medium Enterprises and by the Small Business Guarantee and Finance Corporation which are not past due(BSP Circular No. 153)
- Modifying the regulation requiring an independent appraisal company in connection with a loan restructuring(BSP Circular No. 218)
- The Bangko Sentral’s Discount Window Facility(BSP Circular No. 1202)
- Amendments to the pertinent provisions of Circular No. 1389 dated April 13, 1993 (Consolidated Foreign Exchange Rules and Regulations)(BSP Circular No. 31)
- To restore the six months lag in the computation of loans-to- deposits ratio of banks for the purpose of determining compliance with the loans-to-deposits ratio requirement(BSP Circular No. 278)
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