While this is critical, it is important and urgent to improve regulatory oversight and to ensure that the remedial measures are both appropriate and implementable. Rescue packages will help the immediate problem but they are not preventative going forward.
This was followed by the strengthening of rules on connected party transactions or DOSRI by expanding both the coverage of transactions and the definition of related interests (Circular No. 423). The BSP also issued Circular No. 429 that year which aimed to further strengthen banks’ compliance function.