Metrobank to remain ‘strong’ despite sanctions, BSP says
While the penalties are stiff, these are not something which the bank can’t handle.
Sanctions imposed on the Metropolitan Bank & Trust Company (Metrobank) following lapses that led to a P1.75-billion internal fraud won’t be a fatal blow to the bank, the Bangko Sentral ng Pilipinas (BSP) said.
The central bank ordered the suspension of officers and directors who had failed to catch the irregularities that led to the billions of pesos reportedly pocketed by vice president Marivic Lopez, and also required the listed lender to set aside an additional P4.45 billion worth of capital for additional operational risks.
“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,” the BSP said in a statement.
“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.”
Internal checks and balances may have failed, but the bank’s financial footing is rock solid as ever.