- BSP manages monetary policy and banking supervision as the Philippines’ independent central bank.
- It is pushing fintech innovation, digital payments and cautious digital‑bank licensing amid global pressures.
Bangko Sentral ng Pilipinas: Central bank with a digital vision
The Bangko Sentral ng Pilipinas (BSP) is the Philippines’ central bank, re-established in 1993 through the New Central Bank Act and further strengthened by Republic Act No. 11211. It maintains monetary stability, issues currency, supervises banks and other financial institutions, and manages the national payment system. As per BSP’s own overview, the institution ensures price stability and promotes financial inclusion.
Its head, Governor Eli M. Remolona Jr., leads the Monetary Board, which sets policies independently of the executive branch. BSP’s role also includes managing foreign reserves, issuing the Philippine peso, and educating the public on financial literacy.
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BSP Reforms: Boosting digital banking and financial inclusion
Under its Digital Payments Transformation Roadmap (2020–2023), BSP aims to digitalize 50% of retail payments and provide 70% of adults with financial accounts. It has licensed six digital banks, including Maya Bank and OFBank. To prevent systemic risk, BSP imposed a moratorium on new licences until August 2024.
The QR Ph system helps vendors and small transport operators receive payments via mobile apps. BSP has also joined the Project Nexus initiative to enable real-time cross-border payments across ASEAN.
Fintech Challenges: How BSP manages risk and innovation
The Philippine banking sector invests less in digital (below 10% of spending) than regional peers. BSP uses regulatory sandboxes and pilot testing (e.g., for CBDC and digital ID integration) to balance innovation with consumer protection and AML safeguards.
In a 2024 speech, Remolona noted that BSP will “navigate through uncertainties” while protecting “sound banking fundamentals” (source). Meanwhile, reserve requirements were lowered by 200bps to improve lending capacity under inflation pressure.
