November 28 2017
The Monetary Board (MB) approved the imposition of sanctions on Metropolitan Bank and Trust Company (MBTC) in connection with the examination conducted by the Bangko Sentral ng Pilipinas (BSP) relating to the P1.75 billion fraud allegedly perpetrated by one of its officers. In determining the appropriateness of the sanctions, the MB took into consideration MBTC’s strong financial condition and immediate corrective actions to contain further financial damage. Together with medium to long term initiatives that will serve to improve governance, controls, and compliance, the MB re-affirms the safety and soundness of MBTC.
The sanctions imposed ranged from reprimand to suspension of directors and officers who failed to perform adequate oversight and/or have been complacent/remiss of their duties and responsibilities. Likewise, MBTC was required to allocate approximately P4.45 billion of its capital on a consolidated basis to cover for higher operational risk. The requirement is subject to periodic review and would be lifted when the Bank is determined to have put in place adequate risk control measures to address the weaknesses noted.
