BSP unveils AI rules for Philippine banks and vendors

It aims to guide FIs developing their own AI governance and risk management frameworks.

The Bangko Sentral ng Pilipinas (BSP) has issued governance principles for financial institutions adopting artificial intelligence (AI).

The principles, issued through Memorandum No. M-2026-031 in June 2026, are aimed at FIs developing their own AI governance and risk management frameworks, the central bank said.

The BSP touted five key principles under the acronym STARS: sustainability, transparency, accountability, responsibility, and security.

The memorandum applies to all BSP-supervised financial institutions (BSFIs).

“We want BSFIs to take advantage of AI, especially to serve their customers, and do so while being guided by developing global standards,” said Lyn Javier, deputy governor, BSP.

The memorandum also covers outsourced service providers that support AI-related activities under a shared responsibility model, the BSP said.

The BSP recently took note of the potential application of wholesale central bank digital currency (CBDC) for settlement of financial securities and large-value cross-border payments.

The central bank also recently promoted lower and more transparent digital transaction fees across banks, e-wallets, and other payment service providers in the Philippines.