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BSP hikes liquidity, capital requirements for electronic money issuers

The Monetary Board of the Bangko Sentral ng Pilipinas (BSP) has hiked liquidity and capital requirements for select electronic money issuers (EMIs), in efforts to boost the resilience of the industry amid increasing risks related to information technology.

According to the central bank, EMIs with monthly outstanding e-money balance of at least P100 million are required to maintain liquid assets in trust accounts equivalent to at least 50% of their outstanding e-money balance.

They are also required to cover the remaining balance with placements in bank deposits, government securities, or other liquid assets that the central bank may deem acceptable.

EMIs with an outstanding e-money balance below P100 million may continue to comply with the liquidity requirements through holding eligible liquid assets.

The Monetary Board also hiked the minimum capital requirements for EMIs with a 12-month average value of transactions of at least P25 billion to P200 million, while small-scale EMIs are required to have at least P100 million.

The amendments also lifted the P100,000 monthly aggregate load limit, and allowed EMIs to set pre-defined limits and threshold per client category based on the results of their institutional risk assessment and customer due diligence process.

The new rules classify EMIs into two categories — EMI-Banks, and EMI Non-Bank Financial Institutions which may include cooperatives.

“The amendments are geared towards equipping EMIs in attending to the evolving needs and behaviors of consumers and in responding to the existing and emerging risks in the financial sector, such as cybersecurity and money laundering,” BSP Governor Felipe Medalla said in an accompanying statement.

“The revised guidelines reaffirm the BSP’s commitment to uphold the welfare of Filipinos by promoting a safe, secure, and inclusive financial system,” he added.—LDF, GMA Integrated News