21 June 2017



KAREN DAVILA (KD): The Senate begins today its probe on glitches that affected major banks in recent weeks. And joining us on the line to tell us what we can expect from today's inquiry is Senator Francis 'Chiz' Escudero, chairman of the Committee on Banks, Financial Institutions and Currencies. Good morning to you, Senator Chiz!

SENATOR CHIZ ESCUDERO (CHIZ): Karen, magandang umaga at sa lahat ng ating televiewers. Magandang umaga sa inyong lahat. Good morning!

KD: What can we expect from today's hearing?

CHIZ: Tatlong bagay Karen: una, the factual basis behind what happened with BPI and BDO; number two, what has been done and what will be done to avoid future occurrences from happening again, if at all; and number three, para makita't malaman kung may mga gap sa legislation na kailangang punuan para maiwasan na mangyari ulit ito.

KD: OK. Will there be penalties imposed on the banks in case it's been proven that there are gaps?

CHIZ: Kasama sa idi-discuss namin ang findings ng BSP at marahil bilang regulatory dun papasok 'yung mga katanungan kaugnay niyan pero kung depende sa basehan kung sila ay pinasok o kung may negligence on their part magdedepende iyon sa aktwal na sasabihin nila o basehan dahil ng findings ng BSP kaugnay ng BPI – nangyari sa BPI ay tapos na rin at naniniwala akong (inaudible).

KD: Now, Senator, will the Senate hearing have the technical expertise go deeper and find out if there was hacking involved?

CHIZ: Yes, Karen but we will be very careful about that. We reserved the right to call on executive session whenever necessary because the committee might wittingly or unwittingly use as a tool to find out what kind of computer programs our banking institutions have and in return will use against the banks in the future. We will be very careful lang when it comes to those kinds of information during the hearing.

KD: OK. Last question Senator, what are your expectations? What kind of information do you hope that your witnesses, your guests, will be revealing today that can help other banks as well?

CHIZ: Karen, I hope that they will be able to explain, in layman's terms exactly, what happened and not be too technical so that the depositing public may be reassured so that the speculations about what happened would end. Hopefully, without affecting the banking industry as a whole, bearing in mind that the BPI is the third and BDO is the largest bank in the country. And secondly, hopefully too, we will be able to get some assurance that BSP who is the regulatory body in charge of supervising banks, how this can be avoided in the future. Again, without revealing too much information with respect to their programs and IT safeguards, so much so that others might be encouraged with the information to the same in the future.

KD: On that note, Senator Chiz Escudero, thank you very much, Sir.

CHIZ: Thank you, Karen. Good morning.





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