BSP to Implement Liquidity Requirements on E-money Issuers

The Bangko Sentral ng Pilipinas (BSP) has implemented minimum capital and liquidity requirements on electronic money issuers (EMIs) to create an efficient, safe, and inclusive digital finance ecosystem.

Resolution 122 was issued by the BSP last Jan. 26 which approves the amendments to the provisions of the Manual of Regulations for Banks and the Manual of Regulations for Non-Bank Financial Institutions on the regulations governing the issuance of e-money and EMI operations.

According to BSP Governor Felipe Medalla, the amendments target to equip EMIs with tools to address consumers’ changing behaviors and needs while responding to emerging and existing risks in the financial sector, specifically money laundering, and cybersecurity.

“The revised guidelines reaffirm the BSP’s commitment to uphold the welfare of Filipinos by promoting a safe, secure, and inclusive financial system,”  mentioned Medalla.

Medalla says that these new rules concerning EMIs and operations permit BSP-supervised financial institutions (BSFIs) to adopt risk management systems commensurate to their risk profile, size, systemic importance, and complexity of operations,

“This enables BSFIs to provide financial services attuned to the evolving needs and behavior of consumers and supported by safeguards and controls to ensure that risks remain within manageable levels,” mentioned the Central Bank.

The new guidelines provide higher liquidity and capital requirements for EMIs with significant outstanding e-money balances and large-scale operations.

EMIs that have a monthly outstanding e-money balance of a minimum ₱100 million are required to keep liquid assets in trust accounts equal to a minimum of 50% of their outstanding e-money balance and to likewise cover the remaining balance with placements in government securities, bank deposits, or other liquid assets approved by the BSP.

Source: Philstar