December 28, 2007
BSP CIRCULAR NO. 592-07
SUBJECT : Amended Rules and Regulations on Interlocking Directorships and/or Officerships
Pursuant to Monetary Board Resolution No. 1395 dated 06 December 2007, Section X145 of the Manual of Regulations for Banks (MORB) and Section 4144Q of the Manual of Regulations for Non-Bank Financial Institutions (MORNBFI) are hereby amended to read, as follows: IcEaST
SECTION 1. Sec. X145 Interlocking Directorships and/or Officerships is hereby amended to read as follows:
"Sec. X145 Interlocking Directorships and/or Officerships. In order to safeguard against the EXCESSIVE CONCENTRATION OF ECONOMIC POWER, UNFAIR COMPETITIVE ADVANTAGE OR CONFLICT OF INTEREST SITUATIONS TO THE DETRIMENT OF OTHERS THROUGH THE exercise by the same person or group of persons of undue influence over the policy-making and/or management functions of similar financial institutions WHILE AT THE SAME TIME ALLOWING BANKS, QUASI-BANKS (QBs) AND NON-BANK FINANCIAL INSTITUTIONS (NBFIs) WITHOUT QUASI-BANKING FUNCTIONS TO BENEFIT FROM ORGANIZATIONAL SYNERGY OR ECONOMIES OF SCALE AND EFFECTIVE SHARING OF MANAGERIAL AND TECHNICAL EXPERTISE, the following regulations shall govern interlocking directorships and/or officerships within the financial system CONSISTING OF BANKS, QBs...
