Central bank finds 'lapses' that led to BPI glitch

ABS-CBN News

Posted at Dec 01 2017 10:06 PM

A bank officer talks to customers waiting to get inside the Bank of the Philippine Islands branch in Quezon City in June. Wednesday. The bank said a system glitch affected its computer system, resulting in unauthorized transactions in various accounts. Fernando G. Sepe Jr., ABS-CBN News/file photo

The Bangko Sentral ng Pilipinas (BSP) on Friday said it found lapses in the operations of the Bank of the Philippine Islands (BPI), which resulted in a glitch that paralyzed the services of the country's oldest bank in June.

BSP Deputy Governor Chuchi Fonacier said the regulator has completed its investigation into the incident that was caused by an internal processing error that affected the operations of the Ayala-led bank on June 6 and 7.

"The BSP investigation is complete," she said.

According to Fonacier, the BSP's Monetary Board determines the possible sanctions that could be imposed on banks.

Both the Senate and the House of Representatives launched an inquiry into the incident wherein a programmer of the listed bank committed an error in judgment that resulted in the internal data processing error and incorrect balances were reflected in the accounts of depositors.

During the inquiry at the Senate, BPI officials led by president and CEO Cezar Consing said the glitch that affected the bank's nationwide operations was not a hack.

BPI executive vice president for enterprise Ramon Jocson, meanwhile, said a system programmer who was in a rush to post transactions caused the internal programming error that affected 1.5 million out of its eight million depositors.

The glitch likely affected 540,000 transactions per day. BPI has 827 branches nationwide that handle 850,000 transactions per day.