NextGen Day

According to a high-ranking official, the Bangko Sentral ng Pilipinas (BSP) anticipates the country’s first six digital banks to be completely operating in the first half of this year.

Banks that are converting to digital banking operations, according to BSP Deputy Governor Chuchi G. Fonacier, may start their new business sooner, possibly within the first three months of 2022.

The BSP is still completing some of the regulatory frameworks for digital banks, according to Fonacier.

“The next wave of rules to explain supervisory expectations on digital banks in terms of capital and liquidity, corporate and risk governance, and risk management has yet to be released,” she said.

Fonacier highlighted that digital banks face the same risks as traditional banks and that they are “subject to the same prudential rules, corporate governance standards, risk management guidelines, and other guidelines, among others, with appropriate attention to the principle of proportionality.”

However, the BSP will issue a few additional rules before the new digital banks can start operating fully.

The BSP has authorized only six licenses for digital banks and has closed the application window till the end of December 2023.

According to Fonacier, the BSP accepted two banks that converted their licenses as well as four new participants. “By imposing a moratorium on the issuance of new digital bank licenses, the BSP will be able to closely monitor the banks’ performance and impact on the banking system, as well as their contribution to improving competition and increasing financial inclusion.” Nonetheless, the number of digital bank licenses limit may be changed or lifted at any time, subject to the Monetary Board’s evaluation and approval,” she noted.

Meanwhile, according to Fonacier, the timeline for new digital banks to begin operations would be determined by their preparedness and compliance with pre-operational standards.

Applicants banks that have been accepted by the Monetary Board are given a year to complete these procedures and begin banking operations, according to current regulations, she said.

The BSP’s seventh bank category is a digital bank. Physical touchpoints will be used sparingly or not at all by digital banks, although one office will be required in the Philippines to receive and answer client complaints or difficulties.

The BSP has set a cap on the number of digital banks in order to keep a careful eye on their performance and impact on the banking system, as well as their contribution to the financial inclusion program.

For the time being, the Philippines will only have six digital banks.

These are the Overseas Filipino Bank of the Philippines, whose license was approved on March 25, 2021. The licenses of Tonik Bank and UNObank of Singapore were approved on June 3rd, while UnionDigital of Union Bank of the Philippines received its license on July 15th. On Aug. 12, GOtyme of Robinsons Bank Corp. received a digital bank license, and on Sept. 16, Maya Bank, operated by PayMaya of PLDT Inc., received a digital bank license.

Save/Share this story with QR CODE

---

Disclaimer

This article is for informational purposes only and does not constitute endorsement of any specific technologies or methodologies and financial advice or endorsement of any specific products or services.

📩 Need to get in touch?

Feel free to Email Us for comments, suggestions, reviews, or anything else.

---

We appreciate your reading. 😊Simple Ways To Say Thanks & Support Us:
1.) ❤️GIVE A TIP. Send a small donation thru Paypal😊❤️
Your DONATION will be used to fund and maintain NEXTGENDAY.com
Subscribers in the Philippines can make donations to mobile number 0917 906 3081, thru GCash.
3.) 🛒 BUY or SIGN UP to our AFFILIATE PARTNERS.
4.) 👍 Give this news article a THUMBS UP, and Leave a Comment (at Least Five Words).

---

AFFILIATE PARTNERS

World Class Nutritional Supplements - Buy Highest Quality Products, Purest Most Healthy Ingredients, Direct to your Door! Up to 90% OFF.
Join LiveGood Today - A company created to satisfy the world's most demanding leaders and entrepreneurs, with the best compensation plan today.

---