The Regional Trial Court of Burauen, Leyte (RTC-Burauen) has convicted a former officer of the now-closed Rural Bank of Burauen (Leyte), Inc. for violating the Bangko Sentral ng Pilipinas’ (BSP) Manual of Regulations for Banks (MORB) and appropriate legislation.
Based on charges filed by the BSP, RTC-Burauen convicted the bank’s former president and general manager, Jerone V. Dagatan, for obtaining cash advances that failed to comply with the approval, reportorial, and ceiling requirements for loans and accommodations to Directors, Officers, Stockholders, and their Related Interest (DOSRI).
The various legislation include Section 36 of Republic Act 8791 or The General Banking Law of 2000 in relation to RA 7653 or The New Central Bank Act.
Dagatan pleaded guilty as charged with four counts each for violation of the relevant provisions of the MORB and The General Banking Law of 2000. For each count, the court sentenced Dagatan to imprisonment of four to five years.
The BSP promotes the stability of the financial system and protects the interest of the general public by ensuring BSP-supervised financial institutions’ compliance with banking laws and regulations.
