BSP probing officials of universal bank for alleged P4B ‘unreported and illegal’ loans

The Bangko Sentral ng Pilipinas (BSP) on Monday confirmed it is now investigating top officials of a universal bank over complaints of allegedly over P4-billion worth of "unreported and illegal loans."

In a statement, BSP Governor Benjamin Diokno said the complaints are now being looked into by the Investigation and Prosecution Group of the Office of the General Counsel and Legal Services.

"Rest assured that the legal processes will be observed in handling this complaint," he said in a statement sent to reporters via mobile message.

"However, considering that this is already under investigation, as well as the confidentiality of matters involving banks as provided for under its charter, the BSP cannot comment further," Diokno said.

The statement was released following a column published by the Manila Standard over the weekend, which said that a complaint was filed with the BSP against top officials of a universal bank over "P4 billion worth of unreported and illegal" Director, Officer, Stockholer, and their Related Interests (DOSRI) loans.

The column, About Town, penned by Ernesto Hilario, noted that the unidentified universal bank "is in trouble because it has defaulted on a multi-billion loan exposure."

"According to the grapevine, an entrepreneur engaged in town mall development, and had a falling-out with an investment firm has filed a complaint with the Monetary Board to investigate the top officials of the bank over PhP4 billion worth of unreported and illegal DOSRI loans," the column read.

In the statement on Thursday, Diokno confirmed that a complaint was filed earlier this month on June 3, 2020.

Filed before the Monetary Board, the complaint was made against the directors and officers of the bank for their supposed violation of the provisions of The New Central Bank Charter and The General Banking law of 2000. —LDF, GMA News