THE Regional Trial Court of Burauen, Leyte (RTC-Burauen) convicted a former officer of the now-closed Rural Bank of Burauen (Leyte), Inc. for violating the Bangko Sentral ng Pilipinas’ (BSP) Manual of Regulations for Banks (MORB), Section 36 of Republic Act (RA) No. 8791 (The General Banking Law of 2000), in relation to RA No. 7653 (The New Central Bank Act).
Based on charges filed by the BSP, RTC-Burauen convicted the bank’s former president and general manager, Jerone V. Dagatan, for obtaining cash advances that failed to comply with the approval, reportorial, and ceiling requirements for loans and accommodations to Directors, Officers, Stockholders, and their Related Interest (DOSRI).
The accused pleaded guilty as charged with four counts each for violation of the relevant provisions of the MORB and The General Banking Law of 2000. For each count, the court sentenced Dagatan to imprisonment of four to five years.
The BSP promotes the stability of the financial system and protects the interest of the general public by ensuring BSP-Supervised Financial Institutions’ compliance with banking laws and regulations.
