Frequently Asked Questions on Circular No. 749

July 5, 2012BSP MEMORANDUM NO. M-2012-032TO:All BSP Supervised Financial Institutions   SUBJECT:Frequently Asked Questions on Circular No. 749 To facilitate the implementation of Circular No. 749 dated 27 February 2012, as amended, on the Guidelines in Strengthening Corporate Governance in BSP Supervised Financial Institutions, the following clarifications are hereby issued: I. Section 1. Qualifications of the Board of Directors. —Minimum qualifications1. What are the expectations from a bank in determining whether a person is fit and proper for the position of a director? A bank should have board-approved policies setting-out its standards for a person to be considered as fit and proper for the position of a director. These standards should cover among others, the following: integrity/probity, physical/mental fitness, competence, relevant education/financial literacy/training, diligence and knowledge/experience. The extent to which these standards were adhered to in the selection process and how they manifest in the performance of the members of the board in their individual capacity and as a full board, will be evaluated by the BSP. CDScaTIndependent directors2. What was the rationale for increasing the...