BSP makes $15.9m capital rule mandatory for banks shifting to digital model

The BSP also opened the door to new digital bank licenses and license conversions.

The Bangko Sentral ng Pilipinas (BSP) has tightened capital requirements for thrift, rural, and cooperative banks shifting to digital bank business models, making the $15.93m (PHP1b) capital rule mandatory.

The central bank also can now issue additional digital bank licenses, and convert the licenses of existing thrift banks, rural banks, and cooperative banks to a digital bank license.

Under Circular No. 1240, existing thrift, rural, and cooperative banks who BSP have determined to be operating under a business model similar to that of a digital bank must meet the PHP1b minimum capital requirement applicable to digital banks.

Similarly, when a proposed acquisition is intended to transform a thrift, rural, and cooperative bank into a “technology-driven business model,” the BSP said that it will require the PHP1b minimum capital requirement at the time of application.

The banks must also comply with prudential standards applicable to digital banks. They have six months to comply with the prudential requirements from the day of receipt of the BSP’s notice.

Conversion to a digital bank license is still subject to the BSP’s review, the central bank said.

Over the past years, the Philippine banking sector had seen foreign-backed companies acquire rural banks and use them as launching pads for digital banking platforms.

Speaking to Asian Banking & Finance earlier in 2026, Rafael Francisco Amparo, executive director of the Rural Bankers’ Association of the Philippines, questioned whether the newcomers adhere to the principles that rural banking was built on—which included support for agriculture and underserved communities.

In a statement on 23 September, the BSP said that it may impose additional requirements, including enhanced supervisory reporting, restrictions on certain activities or new digital products and services, and strengthened risk management and control systems.

The requirements aim to ensure that these banks can adequately manage risks arising from the nature, scale, complexity, and risk profile of their operations, the central bank added.

There are currently seven licensed digital banks in the Philippines: GoTyme Bank, MariBank Philippines, Maya Bank, Overseas Filipino Bank, Tonik Digital Bank, UnionDigital Bank, and UNObank.