The central bank of the Philippines is preparing a new framework for digital banking, in a move that could lead to more digital banks being established in the country.
The Bangko Sentral ng Pilipinas is set to publish a circular on the framework later this month, according to comments by deputy governor Chuchi Fonacier to Philippine Daily Inquirer.
The move coincides with developments around the Virtual Banking Act, which some lawmakers hope will pass into domestic law before the end of 2020.
The bill goes further than the central bank circular in the rules imposed on digital banks, including setting a significantly higher minimum capitalization requirement of PHP20 billion (US$411.31 million) raised within four years.
The act would also limit the central bank to authorizing just five digital banks over five years. Foreign ownership limits would be increased over current proposals from a maximum of 40% to a maximum of 70%.