December 14, 2015
BSP CIRCULAR NO. 895-15
SUBJECT : Guidelines on Related Party Transactions
The Monetary Board, in its Resolution No. 1903 dated 13 November 2015, approved the following guidelines on related party transactions (RPTs) of banks and their non-bank financial subsidiaries and affiliates.
SECTION 1. Section X146 of the Manual of Regulations for Banks (MORB) shall now read as follows:
Section X146. Policy Statement. — The Bangko Sentral ng Pilipinas recognizes that transactions between and among related parties create financial, commercial and economic benefits to individual institutions and to the entire group where said institutions belong. In this regard, related party transactions are generally allowed provided, that these are done on an arm's length basis. The BSP expects banks, including their non-bank financial subsidiaries and affiliates, to exercise appropriate oversight and implement effective control systems for managing said exposures as these may potentially lead to abuses that are disadvantageous to the bank and its depositors, creditors, fiduciary clients, and other stakeholders.
SECTION 2. Section X146.1 of the MORB shall read as follows:
Section X146.1. Definition of Terms. — For purposes...
