- Banks moving toward digital business models will face additional capital and risk-management requirements under new rules from the Bangko Sentral ng Pilipinas (BSP).
- Under Circular No. 1240 dated September 21, 2026, thrift, rural, and cooperative banks that the BSP determines are operating similarly to digital banks must meet the ₱1-billion minimum capital requirement currently applicable to digital banks.
- Banks covered by the rule will have six months from receiving the BSP's notice to comply with the new prudential requirements.
Banks moving toward digital business models will face additional capital and risk-management requirements under new rules from the Bangko Sentral ng Pilipinas (BSP).
Under Circular No. 1240 dated September 21, 2026, thrift, rural, and cooperative banks that the BSP determines are operating similarly to digital banks must meet the ₱1-billion minimum capital requirement currently applicable to digital banks.
Banks covered by the rule will have six months from receiving the BSP's notice to comply with the new prudential requirements.
The same ₱1-billion capital requirement will apply when a proposed acquisition is intended to transform a thrift, rural, or cooperative bank into a technology-driven business model. In such cases, the bank must meet the capital requirement when it applies and comply with other prudential standards for digital banks.
The BSP may also impose additional safeguards depending on the bank's operations. These may include more detailed supervisory reporting, restrictions on certain activities or new digital products and services, and stronger risk-management and internal-control systems.
The rules apply to banks that meet certain conditions, including those operating under a business model similar to a digital bank or whose capital and risk-management systems are no longer considered appropriate for their actual business model and risk profile.
They can also cover banks that use digital platforms to provide services while experiencing significant growth in loans or deposits.
For KKBuddies, the rules are mainly aimed at making sure banks expanding their digital operations have enough capital and controls to manage the risks that come with larger and more technology-driven operations.
The circular also allows the BSP to issue additional digital banking licenses, including to existing thrift, rural, and cooperative banks that meet the requirements for conversion.
A digital bank license would allow these institutions to offer digital services to a broader customer base, including customers outside their traditional geographic markets.
The BSP will assess factors such as the bank's readiness, governance and technology systems, business model, value proposition, and available resources before approving a conversion.
There are currently seven licensed digital banks in the Philippines. The BSP said the new requirements are intended to support responsible digital innovation while maintaining the stability and safety of the banking system.