The Regional Trial Court of La Trinidad, Benguet convicted a former loan officer of the closed Rural Bank of Buguias (Benguet) Inc. (RB Buguias) for violating the Bangko Sentral ng Pilipinas (BSP) Manual of Regulations for Banks, the General Banking Law of 2000 and the New Central Bank Act.
Gavino John Bay-an III was sentenced to a fine after being found guilty of participating in issuing irregular and questionable loans to the bank’s directors, officers, stockholders and their related interests (DOSRI).
The criminal case stemmed from the BSP’s discovery of the DOSRI loans during its investigation of RB Buguias’ loan transactions after the bank’s closure.
Former RB Buguias officers were also convicted for violations of the rules on DOSRI loans In October 2023.
The BSP said it continues to promote compliance with existing laws through good governance among its supervised institutions to ensure the soundness of the financial system and protect the public.