BSP Amends Guidelines On Digital Banks

On September 14, 2022, the Bangko Sentral ng Pilipinas (the Philippine Central Bank or "BSP") issued Circular No. 1154 (the "New Circular") to amend the guidelines on digital banks previously set out in Circular No. 1105 dated December 2, 2020 and Monetary Board Resolution No. 1536 dated November 26, 2020. Circular 1154 took effect on October 8, 2022, and clarifies the extent to which prudential banking requirements apply to digital banks, and amends the documentary and licensing requirements on the establishment of digital banks.

Digital Banks

Previously, in issuing Circular 1105, the BSP recognized digital banks as a distinct category of banks and sought to establish an enabling regulatory environment that (a) allows responsible innovation to flourish; (b) promotes cyber resilience; (c) and contributes to advancing the digitalization of the financial industry.