A tale of 2 banks: BSP gives different penalties for Metrobank, RCBC
Different situations call for varied response.
The Bangko Sentral ng Pilipinas (BSP) ordered the suspension of erring directors and officers at the Metropolitan Bank & Trust Company (Metrobank) for their oversight that led to a grand P1.75-billion fraud committed by ex-vice president Marivic Lopez.
On top of this, the central bank required the lender to add P4.45 billion in its reserves to cover for higher operational risk.
This is a stark contrast from the hefty P1 billion monetary fine which the BSP imposed on the Rizal Commercial Banking Corp. (RCBC) in 2016 after it was used as conduit for a grand money laundering case involving stolen funds from Bangladesh.
RCBC fired branch manager Maia Deguito on its own account shortly after news about the $81-billion money laundering case broke. The cash penalty which RCBC has since settled is the biggest ever imposed by the central bank.
The huge difference in scale could very well explain the BSP’s decision on the matter.