Philippines: lending & credit regulation

Regulated

Philippines lending regulated by BSP (banks) and SEC (non-banks); strict rate caps and licensing

Lead regulator:: Bangko Sentral ng Pilipinas (BSP) and Securities and Exchange Commission (SEC)
Key law:: Manual of Regulations for Banks and Non-Bank Financial Institutions; Republic Act No. 11494
Last updated:: 2026-07-12

The Philippines maintains a dual-regulatory framework for lending. The Bangko Sentral ng Pilipinas (BSP) supervises banks and quasi-banks, enforcing strict credit policies and reporting standards under its Manual of Regulations. The Securities and Exchange Commission (SEC) regulates Financing and Lending Companies (FLCs), mandating registration, advertising disclosures, and adherence to interest rate ceilings.

Recent regulatory focus includes the implementation of strict interest rate caps for small, short-term unsecured loans by the SEC and enhanced credit risk assessment tools by the BSP. Both regulators have utilized relief measures during emergencies, such as pandemics and natural disasters, to support financial stability while maintaining oversight.

Licensing is mandatory for all formal lending activities. Banks require BSP authority, while FLCs must register with the SEC and obtain a Certificate of Authority. The regulatory environment is characterized by active intervention to protect consumers from predatory lending practices while ensuring the solvency of financial institutions.

Who regulates

Bangko Sentral ng Pilipinas (BSP)
Primary supervisor for banks, quasi-banks, and non-bank financial institutions; issues circulars on credit policies, reporting, and relief.
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Securities and Exchange Commission (SEC)
Regulator for Financing and Lending Companies (FLCs); enforces registration, advertising standards, and interest rate ceilings.
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Core laws & rules

Manual of Regulations for Banks and Non-Bank Financial Institutions (2022 (Updated 2025))
The primary regulatory framework for banks and non-bank financial institutions, covering credit granting policies, reserve requirements, and operational standards.
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Republic Act No. 11494 (2020)
Enables the SEC to grant regulatory relief to financing and lending companies during crises, such as the COVID-19 pandemic.
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Licensing & registration

Banking and Quasi-Banking
Requires authority from the BSP to operate; subject to comprehensive credit and equity exposure reporting (COCREE).
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Financing and Lending Companies (FLCs)
Must register with the SEC and obtain a Certificate of Authority; required to disclose registration details in all advertisements.
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Restrictions & warnings

Strict ceilings on interest rates and fees for unsecured general-purpose loans not exceeding PhP10,000 with tenors up to four months, mandated by SEC Memorandum Circular No. 14, Series of 2025.
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Mandatory disclosure of corporate name, SEC registration number, and Certificate of Authority in all advertisements and online lending platforms by FLCs.
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Direction of travel

Regulators are enhancing credit risk assessment capabilities through the CRDPh System and tightening reporting standards via COCREE 2.0 to improve financial stability and consumer protection.
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Sources

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This guide is compiled automatically from 13 primary-source documents published by Philippines's regulators, reviewed by RegAlert, and refreshed monthly (last updated 2026-07-12). It is not legal advice — always confirm requirements with the regulator or local counsel before acting.