The monetary board (MB) of the Bangko Sentral ng Pilipinas (BSP) has sanctioned Metropolitan Bank and Trust Company (MBTC) over the PHP1.75bn ($34.8m) fraud case reported in July this year.

BSP in its statement said: “The sanctions imposed ranged from reprimand to suspension of directors and officers who failed to perform adequate oversight and/or have been complacent/remiss of their duties and responsibilities.”

While determining the sanctions, the MB considered MBTC’s strong financial condition and immediate corrective actions to restrain further financial damage.

The monetary board also ordered Metrobank to set aside more than PHP4.45bn ($88.4m) to provide coverage for higher operational risk.

BSP added that it will now periodically review the implementation of new measures and lift the sanctions once the Metrobank is found to have put in place adequate risk control measures to address the weaknesses discovered during the investigation.

Additionally, the BSP also asked Metrobank to submit a Letter of Commitment, to be implemented and completed within one year, and to enhance corporate governance, credit administration, internal controls and audit, risk management, and customer on-boarding and monitoring processes.