BSP to issue circular on banks’ IT system

MANILA, Philippines - The Bangko Sentral ng Pilipinas (BSP) is set to issue circular that would create a comprehensive framework for the business continuity plan (BCP) of the banking industry.

BSP director Gail Fule, in a forum sponsored by global IT solutions provider Dimension Data, said the new circular would define and ensure the readiness of the country’s financial institutions amid a high-technology dependent industry.

“This circular would provide guidelines and standards so the banks would understand and manage their risks related to BCP especially in times of disaster,” Fule said.

On top of this, the BSP official said they would also be issuing a separate circular which would provide for a rating system on banks IT management capabilities.

“The rating scale is 1 to 4, with 4 as the highest which indicates strong IT management system and effective practices that entail the least degree of supervisory concern. The rating guidelines will be issued separately,” she said.

Fule said it is also high time for monetary authorities to update its existing regulations on BCP to make banks more competitive and efficient in handling their risks.

“Banking involves risks. We want to ensure that the banks are ready to manage their risks properly,” she added.

While some banks already have their respective BCPs, Fule said the BSP would want an updated regulation which crafted based on the latest international best practices and standards.

At present, the BSP governs and assesses BCPs of banks based on Circular 511 issued in February 2006.