Philippine Central Bank Institutionalizes Regulatory Sandbox Framework
The Bangko Sentral ng Pilipinas (BSP) has formally institutionalized the Regulatory Sandbox Framework by amending the Manual of Regulations for Banks (MORB) and the Manual of Regulations for Nori-Bank Financial Institutions (MORNBFl).
The Regulatory Sandbox Framework is a step towards the BSP’s goal of fostering an enabling environment for responsible innovation to promote the development of an inclusive digital financial ecosystem that is complemented by a sound risk management system. BSP’s commitment to harnessing the potential of technology has been encapsulated in its “test-and-learn” approach which promotes a more active, evidence-based, and results-driven assessment of new and emerging financial solutions.
Although the central bank champions innovation, it has said that the Regulatory Sandbox Framework cannot be intended or used to circumvent existing laws and regulations under the guise of proposing new and innovative products/services.
The full BSP circular can be accessed here.