An official from the defunct Cooperative Bank of Iloilo, Inc. (CBII) was found guilty of violating the limits of loan allocations to Directors, Officers, Stockholders and Related Interests (DOSRI), the Bangko Sentral ng Pilipinas (BSP) said.
The Regional Trial Court of Iloilo City found Angeles S. Angostura, a former manager of CBII, guilty of all five counts of violation of DOSRI rules under the General Banking Law of 2000, the BSP said in a statement on Tuesday.
With this, Ms. Angostura was sentenced to two years of imprisonment for each count for a total of 10 years.
The BSP filed the lawsuit against the bank official before the Department of Justice. The central bank said the former bank manager deliberately obtained loans from the bank for personal gain and benefit.
“These DOSRI loans were disguised as fringe benefit loans to circumvent the restrictions on the grant of DOSRI loans,” the central bank said.
Republic Act No. 8791 imposes individual and aggregate ceiling requirements for credit disbursed to DOSRIs. These loans cannot exceed the capital contribution and deposit of the borrowing party and need prior written approval by the majority of all the directors of the board.
“The BSP continues to promote financial stability through good governance among its supervised institutions to ensure the soundness of the banking system and to protect the interest of the banking public,” the BSP said. — L.W.T. Noble