The Bangko Sentral ng Pilipinas (BSP) is open to the idea of approving more digital bank applications, Governor Eli Remolona said Wednesday.
“There are many [who are] interested… and the ball is in our court,” Remolona said in a press chat at the BSP headquarters in Manila.
“We are looking at their business models… We are learning and they are learning… We hope we can begin issuing licenses again,” Remolona said.
The BSP earlier authorized six digital banks to operate in the country. These are GoTyme Bank Corp.; Maya Bank Inc.; Overseas Filipino Bank Inc., A Digital Bank of LANDBANK; Tonik Digital Bank Inc.; UnionDigital Bank Inc. and UNObank Inc.
Digital banks, unlike brick-and-mortar banks, have minimal or zero-reliance on physical touchpoints as their products and services are processed end-to-end through digital platforms or electronic channels.
They are considered as complex banks, given their nationwide market reach resulting from the use of digital platforms or mobile applications in the banking services delivery and ability to rapidly expand operations.
The governance expectations, Basel III standards, and prudential reporting requirements applicable to universal and commercial banks also apply to digital banks.
The BSP approved the second set of guidelines for digital banks following the release of the digital bank framework in December 2020.
The approved guidelines set out the BSP’s supervisory expectations with regard to corporate and risk governance of digital banks as well as the applicable prudential regulations on capital, leverage, and liquidity.
The guidelines also prescribed the prudential limits on equity investments in allied undertakings, required reserves against deposit and deposit substitute liabilities, and reporting requirements of digital banks.