{"id":328889,"date":"2024-08-11T13:07:00","date_gmt":"2024-08-11T05:07:00","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=328889"},"modified":"2024-08-11T13:07:03","modified_gmt":"2024-08-11T05:07:03","slug":"trade-the-news-bsp-to-license-4-new-digital-banks-next-year","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/trade-the-news-bsp-to-license-4-new-digital-banks-next-year\/","title":{"rendered":"Trade the News: BSP to license 4 new digital banks next year"},"content":{"rendered":"\n
Potential Impact of this News<\/strong><\/td>NEGATIVE on the stock price<\/strong><\/td><\/tr>
Company<\/strong><\/td>PLDT Inc.<\/td><\/tr>
Stock Code<\/strong><\/td>TEL<\/td><\/tr>
Long-term Recommendation on the Stock<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 1,752.53<\/td><\/tr>
<\/td><\/td><\/tr>
Potential Impact of this News<\/strong><\/td>NEGATIVE on the stock price<\/strong><\/td><\/tr>
Company<\/strong><\/td>JG Summit Holdings Inc.<\/td><\/tr>
Stock Code<\/strong><\/td>JGS<\/td><\/tr>
Long-term Recommendation on the Stock<\/strong><\/td>Hold<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 46.05<\/td><\/tr>
<\/td><\/td><\/tr>
Potential Impact of this News<\/strong><\/td>NEGATIVE on the stock price<\/strong><\/td><\/tr>
Company<\/strong><\/td>UnionBank of the Philippines<\/td><\/tr>
Stock Code<\/strong><\/td>UBP<\/td><\/tr>
Long-term Recommendation on the Stock<\/strong><\/td>Hold<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 43.92<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
<\/div>\n\n\n\n

The Bangko Sentral ng Pilipinas (BSP) will allow four more digital banks to operate in the country starting next year, it said on Thursday.<\/p>\n\n\n\n

\u201cThe Monetary Board has approved the lifting of the moratorium on the grant of new digital banking licenses starting on Jan. 1, 2025 and allowed a maximum of 10 digital banks to operate in the country,\u201d it said in a statement.<\/p>\n\n\n\n

The four additional licenses may come from either new applicants or banks seeking to convert their existing license to a digital one.<\/p>\n\n\n\n

\u201cWith this limit, the BSP can closely monitor developments in the digital banking industry, obtain a broader perspective as these banks mature further in their operations, as well as assess the impact of the entry of new players on the banking system,\u201d BSP Governor Eli M. Remolona, Jr. said.<\/p>\n\n\n\n

The BSP said that the applicants will undergo a \u201crigorous\u201d licensing process which will evaluate their value proposition, business models and resource capabilities.<\/p>\n\n\n\n

Applicants must also be compliant with the standard licensing criteria, which covers transparency on ownership and control structures; the composition of shareholders, directors, and senior management; capital adequacy and corporate governance and risk management, among others.<\/p>\n\n\n\n

In 2021, the central bank capped the number of digital banks at six.<\/p>\n\n\n\n

The six digital banks currently operating in the Philippines are:<\/p>\n\n\n\n