June 14, 2024

The Regional Trial Court of La Trinidad, Benguet has convicted a former loan officer of the closed Rural Bank of Buguias (Benguet), Inc. (RB Buguias) for violating the Bangko Sentral ng Pilipinas Manual of Regulations for Banks, the General Banking Law of 2000, and the New Central Bank Act.

The court sentenced former RB Buguias loan officer Gavino John B. Bay-an III to pay a fine after he was found guilty of participating in the release of irregular and questionable loans to the bank’s directors, officers, stockholders, and their related interests (DOSRI).

The criminal case filed by the central bank arose after the BSP discovered the DOSRI loans during its investigation of RB Buguias’ loan transactions after its closure.

In October 2023, the courts also convicted former officers of RB Buguias for violations of the rules on DOSRI loans.1

The BSP continues to promote compliance with laws through good governance among its supervised institutions to ensure soundness of the financial system and to protect the transacting public. – Press release