Philippines c. bank lifts moratorium on digital banks

The Philippines central bank (BSP) lifted its moratorium on new digital banking licenses effective January 1, 2025, allowing a maximum of ten digital banks to operate in the Philippines.

This decision aims to harness the benefits of digital banking while managing associated risks. BSP Governor Eli M. Remolona, Jr. emphasised the importance of monitoring developments in the industry and assessing the impact of new entrants on the banking system. Since the introduction of the Digital Banking Framework in December 2020, six digital banks have been operating in the country.

The new policy will accommodate four additional licenses for either new or converting banks. Applicants will undergo a rigorous licensing process, evaluating their value proposition, business models, and resource capabilities, in addition to meeting standard licensing criteria.

Governor Remolona highlighted the need for applicants to offer unique and innovative services that can reach broader clientele, especially untapped or underserved market segments.

The decision to lift the moratorium aligns with the BSP’s goals of ensuring financial stability, increasing financial inclusion, and promoting digital transformation.

Attribution: BSP statement