March 21, 2023

Rural Bank of Burauen Inc. former exec gets court conviction

The bank exec of the now-closed institution was convicted for failure to comply to DOSRI loan requirements.

The Regional Trial Court of Burauen in Leyte has convicted a former executive of the now-closed Rural Bank of Burauen Inc.

Bank regulator BSP said the Leyte bank’s former president and general manager, Jerone Dagatan, obtained cash advances that failed to comply with the necessary approval, reportorial, and ceiling requirements for loans and accommodations granted to directors, officers, stockholders and their related interest.

The said conviction was a violation of the BSP’s Manual of Regulations for Banks (MORB), Section 36 of Republic Act (RA) 8791 (The General Banking Law of 2000) in relation to RA 7653 (The New Central Bank Act).