Beyond asset clean up, the BSP is following through with its regulatory reforms aimed at further strengthening corporate governance, risk management and capital adequacy in our banks through a more effective and efficient enforcement. Last year, we began the changeover to International Accounting Standards/Financial Reporting Standards. This would further strengthen the current transparency and disclosure requirements in financial reporting.
The pivotal role of external auditors during this transition period is also being given higher importance. Recently, we have issued new regulations on internal audit designed to adopt a code of ethics and establish mechanisms for the reporting of financial improprieties, malpractices and acts of misconduct (corporate whistle-blowing).