{
  "id": 10021814,
  "title": "BSP sets P1 billion capital floor for banks shifting to digital model",
  "url": "https://urgent.news/2026/09/26/bsp-sets-p1-billion-capital-floor-for-banks-shifting-to-digital-model",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-26T16:00:00.000Z",
  "source": {
    "name": "Philippine Star Business",
    "slug": "philippine-star-business",
    "url": "https://www.philstar.com/business/2026/09/27/2559094/bsp-sets-p1-billion-capital-floor-banks-shifting-digital-model"
  },
  "original_language": "en",
  "account": "The Bangko Sentral ng Pilipinas (BSP) has established a minimum capital floor of P1 billion for thrift, rural, and cooperative banks transitioning to a digital model, as outlined in Circular 1240. This rule aims to ensure these banks can effectively manage risks associated with rapid technology-driven expansion. Banks deemed to have a business model similar to a digital bank or whose capital and risk management systems are inadequate for their scale and risk profile will be required to comply within six months of the central bank's notice. The P1-billion minimum capital requirement is identical to the threshold applied to licensed digital banks. Additional requirements may apply to digital platforms experiencing rapid growth in loans or deposits, defined as a quarterly increase of over 30 percent for two consecutive quarters. The BSP may also impose further restrictions, such as limiting certain activities, introducing enhanced supervisory reporting, and mandating improvements in risk management and internal controls, including automated anti-money laundering systems and real-time fraud monitoring. The new framework also encompasses acquisitions aimed at transforming existing thrift, rural, or cooperative banks into technology-driven lenders, requiring compliance with prudential standards comparable to those of digital banks, including the P1-billion minimum capital requirement. This circular addresses the trend of traditional banks utilizing digital platforms to expand without obtaining a digital banking license, thereby blurring the lines between conventional and fully digital banking models. The BSP may also issue additional digital bank licenses, subject to its licensing framework, which includes assessing factors such as the proposed business model, governance framework, risk management systems, financial and operational capacity, technological capabilities, and strategic value proposition. Currently, there are seven licensed digital banks in the Philippines. The circular further stipulates that digital banks may offer products and services through cash agents and other qualified service providers.",
  "summary": "Thrift, rural and cooperative banks that increasingly operate like digital banks will be required to maintain at least P1 billion in capital under new rules aimed at ensuring that rapid technology-driven expansion does not outpace their ability to manage risks.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}