Bangko Sentral to issue bank governance framework empowering consumers

A scheme setting governance standards for banks and financial institutions to protect consumers is being readied by the Bangko Sentral ng Pilipinas for release this year, according to central bank officials. 

 

“The Bangko Sentral  is preparing to release a Consumer Protection Framework (CPF) that is applicable to its covered institutions,” Governor Amando Tetangco Jr. said in a speech before the Bankers Institute of the Philippines (BAIPHIL) Wednesday, copies of which were sent to reporters Thursday. 

 

Asked when the regulator eyes the release of the framework, Bangko Sentral Deputy Governor Nestor Espenilla said in a text message to GMA News Online on Thursday, “This year.”

 

Espenilla, however, said details of the framework are “still under development.”

 

In his speech, Tetangco noted that the framework will be built on “pillars of consumer empowerment, market conduct and collective responsibility.

 

“The governance standards put into practice by each BSP-covered institution will play a central role within the CPF,” he added. 

 

The central bank chief said good corporate governance—as part and parcel of consumer protection—goes beyond a bank employees and heeding regulation. 

 

“It must consider fair and acceptable behavior, among others, to those who are more vulnerable, even if it means accruing less to the bottom-line. This is the very essence of why banking is imbued with public interest,” Tetangco said. 

 

Other than maintaining price stability conducive to a balanced and sustainable economic growth, the Bangko Sentral also supervises operations of banks and non-bank institutions with quasi banking services. 

 

“Consumer protection is now part of the core practices for which the BSP exercises supervision and regulation,” said Tetangco. 

 

In a speech earlier at the Bangko Sentral's 20th anniversary, Tetangco said developing an “empowering and sustainable financial inclusion program that includes relevant financial access, wide-reaching financial education and strong financial consumer protection” is among the central bank's six-point agenda. 

 

The Bangko Sentral is one of the government agencies implementing The Consumer Act of the Philippines, or Republic Act No. 7394

 

So far, the regulator has released various circulars covering consumer credit and savings transactions extended by banks and other financial intermediaries.

 

“The introduction of the CPF is a milestone for us,” Tetangco said in his BAIPHIL speech. — VS, GMA News