BSP sets P1-B capital requirement for banks shifting to digital models

The Bangko Sentral ng Pilipinas (BSP) has released a circular mandating that thrift, rural, and cooperative banks shifting to digital bank business models have a P1-billion minimum capital requirement, the same measure required of digital banks.

Under Circular 1240, dated September 21, 2026, the BSP has given the concerned banks six months to comply with the capital requirement, in addition to the prudential standards applicable to digital banks.

Proposals to transform a TB, RB, or coop bank into a technology-driven business model will also be subject to a minimum capital requirement of P1 billion at the time of application.

The requirements cover thrift, rural, and cooperative banks that either operate like digital banks or whose risk management and capital are no longer aligned with their business model and risk profile, as well as those that use digital platforms and post significant growth in loans or deposits.

“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 BSP said.

“The BSP continues to promote responsible innovation and prudent digital transformation while safeguarding the banking system,” it added.

The BSP earlier said it wants a level playing field among digital banks and “digital-centric” conventional banks.

The first six banks to secure a digital banking license are GOTyme, Maya Bank, Overseas Filipino Bank (OFBank), Tonik Bank of Singapore, UNObank of Singapore, and UnionDigital of the Union Bank of the Philippines. — BAP, GMA News