001 EXAMINATION BY THE BANGKO SENTRAL
a. Scope of examination. Consistent with a risk-based approach to supervision, the scope of examination may include, but need not be limited to, the following:
(1) Appraisal of the overall quality of corporate governance;
(2) Assessment of the risk management system, which shall include the evaluation of the effectiveness of management oversight and self-assessment functions (e.g., internal audit, risk management and compliance); adequacy of policies, procedures, and limits; effectiveness of risk measurement, monitoring and management information system; and robustness of internal controls;
(3) Review of the institution’s operations and overall risk profile;
(4) Evaluation of financial performance, capital adequacy, asset quality, and liquidity; and
(5) Any other activity relevant to the above.
b. Conduct of examination. The conduct of examination shall include, but need not be limited to, the interview of any bank’s directors, officers and personnel; and the verification, review and evaluation of documents and records, including making copies of the records, taking possession thereof and keeping them under the custody of the Bangko Sentral after giving proper receipts thereof.
(Circular No. 957 dated 17 April 2017)