Similarly, we have highlighted the role of independent directors in protecting the broader public interest and the creation and empowerment of critical board-level committees on corporate governance, risk oversight and audit. To promote fairness and transparency further, we have enforced stronger safeguards against connected party transactions.
Another related issuance of the BSP is the revision of the prompt corrective action or PCA framework following the issuance of Circular No. 523 dated 23 March 2006. This was done to compel banks to take pre-emptive action against what may constitute as threats to financial stability and thereby, ensure that they continue to operate in a safe and sound manner.