The Bangko Sentral ng Pilipinas (BSP) will not be granting any appeals or requests extending the nine-year term limit of banks’ independent directors, BSP Deputy Governor Chuchi G. Fonacier said.

 Fonacier in BSP Memorandum No. M-2021-025, which she signed on April 23, said requests of all BSP supervised financial institutions (BSFIs) on term extensions are denied.

“The BSP shall not approve requests for exemption from the said term limit for independent directors,” she said.

BSP Deputy Governor Chuchi G. Fonacier

She explained in the memo that BSP aims to promote good corporate governance and effective risk management systems in the financial industry. “It is in this light that the BSP issued regulations that institutionalize control measures to highlight accountabilities, strengthen checks and balances, and ultimately protect the interest of customers and depositors. These measures, include among others, the term limit for independent directors,” she said.

  BSP rules and regulations based on Section 132/132-Q of the Manual of Regulations for Banks/Manual of Regulations for Non-Bank Financial Institutions state that an independent director of a BSFI may only serve as such for a maximum cumulative term of nine years.

“After which, the independent director shall be perpetually barred from serving as independent director in the same BSFI but may continue to serve as its regular director,” said Fonacier. The nine-year maximum cumulative term will be reckoned from 2012.

Source: Manila Bulletin (