BSP Mulls Tougher Rules for Digital-Centric Banks

The Bangko Sentral ng Pilipinas (BSP) is drafting new rules to assess and regulate traditional banks that operate primarily on digital platforms, in a bid to level the playing field between digital banks and conventional lenders heavily relying on technology.

- — Keisha Ta-asan

"The BSP is crafting its guidelines on the assessment of the level of digital centricity of thrift banks, rural banks, and cooperative banks," BSP Deputy Governor Chuchi Fonacier said at the Chamber of Thrift Banks (CTB)'s 51st Annual Convention held yesterday in Makati.

Fonacier said the upcoming guidelines would define indicators that determine whether a bank is digital-centric and subject them to proportionate prudential standards.

This includes phased implementation of higher regulatory requirements similar to those imposed on digital banks.

"This approach promotes a level playing field and ensures consistent application of regulatory requirements and expectations between digital banks and digital-centric banks," Fonacier said.

She noted that the guidelines are currently being drafted and are expected to be released in the coming months once approved by the Monetary Board.