The Bangko Sentral ng Pilipinas (BSP) will lift its moratorium on digital banking licenses starting January 1, 2025, but will cap the number of new licenses at ten.
This move aims to allow close monitoring of the digital banking sector and evaluate the impact of new entrants on the banking system, BSP Governor Eli Remolona Jr. stated.
Currently, six digital banks operate in the Philippines, so the new policy will permit up to four additional licenses, whether for new entities or converting existing banks.
Applicants must present unique products or services that address underserved market segments and meet stringent criteria, including transparency, capital adequacy, and governance.
The BSP’s decision follows an assessment of existing digital banks and aims to foster innovation while managing associated risks.
Source : PhilNews24 | August 9, 2024
