RCBC receives ‘A’ rating from Morgan Stanley unit

LISTED Rizal Commercial Banking Corp. (RCBC) turned into rated “A” by using a unit of Morgan Stanley Capital International (MSCI), mentioning its economic stability and sound business company as key additives for effective chance control.

RCBC “has robust company governance practices, in particular with appreciate to the board structure,” stated a MSCI ESG Ratings document shared through the Yuchengco-led lender on Monday.

“It has additionally taken steps to mitigate governance-associated risks with efforts in the direction of anti-corruption and anti-money laundering sports, along side whistleblower protection application for powerful risk control framework,” it added.

MSCI ESG Ratings identifies environmental, social and governance (ESG) risks that groups are liable to. It deploys researchers and ranks organizations on a “AAA” to “CCC” scale, relying on the publicity to enterprise-unique ESG dangers and their ability to control them relative to their competitors.

In a declaration, RCBC Chief Risk Officer Jamal Ahmad said the rating tested the efforts his financial institution changed into exerting to manipulate its dangers.

“This is our first ESG score. Clearly, our rating is an correct reflection of our status on this essential area of threat management,” he said.

The rating comes after RCBC merged with subsidiary RCBC Savings Bank (Stock Global broker reviews) earlier this 12 months, a circulate the retaining organization of the Yuchengco Group of Companies stated might keep the previous up to P700 million a 12 months.

The merger turned into accredited by way of the RCBC board on Nov. 26, 2018 and by using the RSB board the following day. It acquired regulatory approval on July 17 this 12 months.

With the merger, RSB’s 154 commercial enterprise and lending centers nationwide have been consolidated with the 508 business centers of RCBC.

The consolidation might help the RCBC Group acquire these goals: more green capital deployment and compliance with Basel 3 liquidity ratios; finest coordination among the department banking networks of RCBC and RSB; medium-time period improvement within the investment economics; and operational fee efficiencies.