Philippines: Implementation of local operations requirements on digital banking for foreign investors

In December 2020, through the issuance of the Bangko Sentral ng Pilipinas (BSP) Circular No. 1105/2020, the Philippines mandated the digital banks to maintain a principal or head office in the Philippines to serve as the main point of contact for stakeholders, including the BSP and other regulators. This local presence requirement gave the additional cost to foreign digital banking who wanted to operate in the Philippines.