Clarification on the Guidelines on the Establishment of New Banks

BANGKO SENTRAL No PILIPINAS OFFICE OF THE DEPUTY GOVERNOR FI NANCIAL SU PERVISION SECTOR ctRcutAR LETTER NO. CL-2021- 006 To All Applicants for the Establishment of New Banks Subject : Clarification on the Guidelines on the Establishment of New Banks This is to inform all prospective applicants for new banks that the Bangko Sentral has issued the Guidelines on the Establishment ol Digital Bdnks as embodied under Circular No. 1105 dated 02 December 2020. Circular No. LL05 provides the regulatory framework for the establishment of digital banks and recognizes such as a distinct classification of banks. Said regulatory issuance defines a digital bank to clearly distinguish it from the other types of banks. In this respect, new bank applications with business model that essentially meets the definition of a digital bank shall be treated and evaluated as digital banking license applications, regardless of the type of bank indicated in the application. Accordingly, the applicants should comply with the prudential requirements for the establishment of a digital bank. Moreover, the documentary requirements are provided in Appendix 33 of the Manual of Regulations for Banks, as amended (i.e., Annex A of Circular No. 1105). The licensing of a digital bank will generally follow the existing procedures and timelines as set in the Citizen's Charter. lf any, kindly email clarification or query on the processing of application for authority to establish a digital bank to [email protected]. For information and guidance. Digitally signed by . ChuchiG. Fonacier Date: 2021.01.12 10:02:01 +08'00' CHUCHIG. FONACIER Deputy Governor 12 January 202L