In particular, our efforts to bolster risk management systems, enhance corporate governance standards, build-up capital and adopt international best practices are intended to improve the efficiency and competitiveness of our banks. The Bangko Sentral is mindful that in aligning ourselves with global best practices, we at the same time should take local conditions into consideration.
Thus, while commercial banks are required to be Basel III compliant starting January 2014, the BSP’s requirement for rural banks is the less stringent Basel 1.5. Another program tailor-fit for rural banks is the Strengthening Program for Rural Banks, a joint undertaking of the BSP and the PDIC.