MANILA, Philippines - The Bangko Sentral ng Pilipinas (BSP) has approved the guidelines to strengthen the risk management systems and promote the sustained safe and sound operations of supervised financial institutions.
BSP Governor Amando Tetangco Jr. said the central bank would pursue reforms this year to further strengthen the country’s banking sector.
“Our key thrust on the banking side for 2016 will be to sustain the banking reform agenda of the BSP to foster greater financial stability,” he said.
Toward this end, Tetangco said the BSP would continue to implement the Basel reform agenda and follow through the implementation of the approved policies aimed at enhancing bank risk management, improving market conduct and strengthening banking supervision.
Operational risk is among the top risk exposures of BSP supervised financial institutions cutting across all activities, products, and services, and may even come in tandem with the other types of risks such as credit, liquidity, and market. It may result from weak controls, inadequate policies on acceptable behavior and practices, poor working environment, weak sales and marketing practices, system failures, or natural or man-induced disasters, among others.