The Bangko Sentral ng Pilipinas (BSP) is introducing new prudential requirements and tiered capital rules for digital-centric banks to ensure regulatory alignment and a level playing field.
The Bangko Sentral ng Pilipinas (BSP) planS to implement new prudential requirements for banks with a significant digital presence, according to a draft circular published on July 28, 2025.
The move aims to align regulatory standards with the risk exposure of these institutions and foster a level playing field.
The draft classifies digital-centric thrift, rural and cooperative banks as “complex banks” and categorizes them into three tiers based on their level of technology utilization and digitalization efforts.
Tier 1 Includes licensed rural and cooperative banks with at least 30 PERCENT of their deposit or loan customers digitally onboarded. These banks will need a minimum capital of P200 million.
Tier 2 requires at least 50 percent of customers onboarded via digital channels. Rural and cooperative banks in this tier should hold a minimum capital of P500 million, while thrift banks will need P600 million.
Tier 3 demands at least 75 percent digital customer onboarding. Banks in this tier should have a minimum capital of P1.0 billion, making them eligible for conversion to a digital bank.
These percentage baselines will also apply to the banks’ sourcing of deposits or loans and the classification of transactions as electronic payment and financial services, according to the draft circular.
Beyond capital, banks in all tiers will be required to comply with the Basel III Leverage Ratio, adopt electronic anti-money laundering systems and implement automated and real-time fraud monitoring and detection systems.
The BSP said these requirements “ensure that regulatory standards remain commensurate with the risk exposures of banks” and level the playing field for incumbents and new entrants into banking.”
The BSP said it is accepting feedback on the draft circular until Aug. 12, 2025.
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