The Bangko Sentral ng Pilipinas (BSP) has issued capital and other requirements for thrift, rural and cooperative banks shifting to digital bank business models.
The move aims to ensure these banks operate safely and soundly.
Under Circular No. 1240, dated September 21, 2026, BSP identifies existing thrift banks, rural banks and cooperative banks operating under a business model similar to a digital bank.
These banks must meet the same PHP 1 billion minimum capital requirement applicable to digital banks, among other requirements.
Covered banks have six months to comply from receipt of BSP’s notice.
The same PHP 1 billion threshold applies when a proposed acquisition is intended to transform a thrift, rural or cooperative bank into a technology-driven business model.
In such cases, the requirement takes effect at the time of application.
BSP may also impose additional requirements.
Additional requirements may cover enhanced supervisory reporting and restrictions on certain activities or new digital products and services.
BSP may also require strengthened risk management and control systems.
The requirements cover banks that fall under two conditions.
First, they operate under a business model similar to a digital bank or their risk management systems and capital are no longer commensurate with their official business model and risk profile.
Second, they use digital platforms to deliver services and record significant growth in loan or deposit balances.
A Pathway to Full Digital Bank Status
The circular also allows BSP to issue additional digital bank licenses. Existing thrift, rural and cooperative banks may convert into digital banks under this pathway, subject to the applicable licensing framework.
A digital banking license would let these banks market their services to a wider customer base. It includes areas outside their usual geographic reach.
Conversion applications are subject to review.
BSP considers each bank’s readiness to run a digital bank, its governance and systems, value proposition, business model and resource capabilities.
There are currently seven licensed digital banks in the Philippines.
Maya Bank, GoTyme Bank, UnionDigital Bank, UNObank, Tonik Digital Bank, Overseas Filipino Bank and MariBank.
BSP raised its licensing cap from six to ten in 2025, and three slots remain open under that cap.
Featured image: Edited by Fintech News Philippines based on an image by SJasminum via Wikimedia Commons.
