Regulatory Alerts2024-12-26
Circular No. 1205: Lifting of the Moratorium on the Establishment of Digital Banks
The Bangko Sentral ng Pilipinas issued Circular No. 1205 to lift the moratorium on the establishment of digital banks, allowing for the issuance of new digital banking licenses and the conversion of existing bank licenses. This regulatory change aims to foster financial inclusion by enabling digital banks to serve unbanked and underbanked populations through innovative business models. The circular outlines specific eligibility criteria, including the requirement for a minimum paid-up capital of 5 billion Philippine pesos and strict governance standards for applicants.
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