BSP sanctions Metrobank for P1.75-billion internal fraud

The Bangko Sentral ng Pilipinas (BSP) has ordered directors of the Metropolitan Bank & Trust Co. (Metrobank) suspended in relation to the P1.75-billion fraud committed by a Metrobank officer.

“The sanctions imposed ranged from reprimand to suspension of directors and officers who failed to perform adequate oversight and/or have been complacent/remiss of their duties and responsibilities,” the central bank said on Tuesday, citing a decision by its policy-setting Monetary Board.

The National Bureau of Investigation (NBI) nabbed Ma. Victoria "Marivic" Lopez, head of Metrobank's corporate service management, for supposedly falsifying documents on interest payments that enabled her to make as much as P1.75 billion.

The Monetary Board also ordered Metrobank to earmark more than P4 billion for operational risks.

“Likewise, MBTC was required to allocate approximately P4.45 billion of its capital on a consolidated basis to cover for higher operational risk,” the central bank said.

“The requirement is subject to periodic review and would be lifted when the bank is determined to have put in place adequate risk control measures to address the weaknesses noted,” it emphasized.

According to Metrobank, it adheres to the sanctions ordered by the BSP and that the incident is an isolated case.

"The board and senior management accept accountability and command responsibility for the incident and commits to implementing the directives," it said in a separate regulatory filing.

"After conducting a 100-percent audit, the bank reiterates that no customer was affected. This is an isolated. The perpetrator acted alone and for her sole benefit. She has been apprehended and cases against her have been filed," it added.

Lopez supposedly siphoned off disbursed loans into fictitious accounts under the name of Universal Robina Corp. (URC), an incident which it has since downplayed.

"Even as Metrobank continues to conduct an internal investigation on the matter, we would like to assure everyone that URC will not incur any financial loss whatsoever and that the integrity and security of URC and its active accounts at Metrobank remain unaffected by the said incident," the company said in July.

On the capital reserve requirement, Metrobank said it currently has enough in equity and assets to comply with regulatory sanctions.

"With P2.0 trillion in assets and P210 billion in equity, MBTC is in a strong position to set aside P4.45 billion of capital reserve in line with the BSP's directive," it said.

"In addition, the bank has proactively absorbed the entire amount related to this incident in the 3Q. Despite this, the growth momentum of the bank remains robust and results for the year are ahead of plan," it added.

At P1.620 trillion as of June 30, 2017, Metrobank is the second-largest bank in the country in terms of assets. — VDS, GMA News