The Monetary Board said it amended the Bangko Sentral ng Pilipinas corporate guidelines, raising the number of independent directors of banks and other supervised financial institutions to promote good governance.
“The policy change, which is anchored on the fundamental principle that the tone of good governance should come from the top, sets out enhanced requirements on the membership composition of the board,” Bangko Sentral said in a statement.
Bangko Sentral said the amendment aimed to ensure the board of directors was comprised of a collective mix of individual who possess the expertise and competence to effectively manage the financial institution
“The amendments also aim to promote an environment that fosters critical exchange of views and exercise of objective judgment,” it said. The approved policy requires non-executive directors, who shall include independent directors, to comprise majority of the board. The prescribed number of independent directors was increased from 20 percent to one-third of the members of the board, or two directors, whichever was higher.