By James A. Loyola
Rizal Commercial Banking Corporation (RCBC) was given an “A” rating by the Morgan Stanley Capital International (MSCI) which cited financial stability and sound business organization as key components for effective risk management.
MSCI ESG Ratings identifies environmental, social and governance (ESG) risks that companies are vulnerable to. The rating agency deploys researchers and ranks companies on a ‘AAA’ to ‘CCC’ scale depending on the exposure to industry-specific ESG risks and their ability to manage those risks relative to competitors.
“Rizal Commercial Banking has robust corporate governance practices, particularly with respect to the board structure,” the MSCI ESG said in the report. It added that, “(RCBC) has also taken steps to mitigate governance related risks with efforts toward anti-corruption and anti-money laundering activities, along with whistleblower protection program for effective risk management framework.”
According to Jamal Ahmad, RCBC Chief Risk Officer, the rating validates the efforts and steps that the bank is currently undertaking to manage its risks.
“This is our first ESG rating. Clearly, our rating is an accurate reflection of our standing in this important area of risk management,” he said.
Earlier this year, RCBC merged with its subsidiary RCBC Savings Bank into a single unit making the financial institution a double barreled gun in the industry servicing both consumer and corporate sectors while minimizing risks.