Philippine Bankers Stress Governance, Resilience at BSP Summit

MANILA, Philippines — The heads of the country’s biggest banks highlighted the importance of governance, integrity, and financial resilience during a summit organized by the Bangko Sentral ng Pilipinas (BSP). The BSP’s inaugural Corporate Governance Summit was held at a time when financial institutions are navigating an increasingly complex operating environment, reinforcing the importance of governance in building resilient and future-ready organizations. Against a backdrop of geopolitical tensions, technological disruption, cyber threats, and increasingly interconnected markets, governance continues to emerge as a strategic imperative that extends beyond regulatory compliance. The summit’s theme, ”Navigating the Future: Governance in Action,” underscores the role of effective leadership, accountability, and sound decision-making in sustaining institutional resilience. “As boards, we often think of governance in terms of oversight and accountability. But good governance also requires understanding the opportunities and risks shaping the future of the organization – and that begin with continuous learning,” said Union Bank of the Philippines president and CEO Ana Aboitiz Delgado. Delgado, who is also president of the Bankers Association of the Philippines (BAP), said “directors must understand technology because the same digital innovations that enable us to serve customers better, operate more efficiently, and grow our businesses also introduce new and evolving risks that boards are expected to oversee.” Discussions at the summit highlight how digital transformation is reshaping traditional measures of resilience in the financial sector. While financial strength remains fundamental, institutions are increasingly expected to demonstrate operational reliability, data integrity, and the ability to respond effectively to disruptions in an increasingly digital environment. Speakers note that as financial institutions accelerate their digital transformation efforts, strengthening cybersecurity capabilities has become essential to safeguarding operations and maintaining trust in the financial system. “As we’ve seen through financial crises and in recent years, it’s all about cybersecurity. And if you think of it, as we digitalize all our products, all our processes, that means every aspect of banking is open and vulnerable to cyber threats,” said HSBC president and BAP director Sandeep Uppal. The rapid adoption of digital services has likewise heightened the need for robust governance and risk management frameworks to address evolving threats, including cybercrime, fraud, and money mule activities. As trust remains the cornerstone of the financial system, protecting it requires sustained vigilance and strong oversight. Participants also emphasized that cybersecurity, technology risk, and artificial intelligence governance have become critical board-level priorities, requiring active engagement from directors and senior executives. The summit provides a platform for industry leaders to exchange insights on strengthening governance frameworks to safeguard both individual institutions and the broader Philippine financial ecosystem. Industry leaders likewise commend the leadership and policy direction of the BSP, emphasizing that many of the sector’s reforms and achievements have been supported by its guidance. Corporate executives also highlight how financial institutions and corporate governance initiatives continue to flourish under the environment of financial stability and policy credibility fostered by the BSP. BSP Governor Eli Remolona Jr. continues to be recognized for his transparent and pragmatic approach to policymaking, which has strengthened confidence in the country’s financial system and supported sustainable economic growth, amid persistent global challenges – including inflationary pressures, market volatility, and external risks. “It’s important to instill confidence, a public trust in the bank. And the response has to be to adjust to new challenges,” said Rizal Commercial Banking Corp. president and BAP director Reginaldo Cariaso. “You open communications, as necessary, in order to ensure that the company’s stakeholders are confident in the organization and its ability to recover from such threats.” Information Source: Philstar Business