The Bangko Sentral ng Pilipinas (BSP) has issued governance principles to guide banks and other BSP-supervised financial institutions in adopting artificial intelligence while protecting consumers and maintaining trust in the financial system.
The central bank issued the “Governance Principles for Artificial Intelligence in Financial Services” through Memorandum No. M-2026-031 dated June 24, 2026. The guidelines aim to help BSP-supervised financial institutions, or BSFIs, develop their own AI governance and risk management frameworks.
The BSP promotes the responsible and ethical use of AI through five key principles: sustainability, transparency, accountability, responsibility, and security, collectively known as STARS.
“AI is spreading across BSFI operations, and STARS provides them with principles that can help them innovate while mitigating unintended consequences from the use of the technology,” BSP Deputy Governor Lyn I. Javier said.
“We want BSFIs to take advantage of AI, especially to serve their customers, and do so while being guided by developing global standards,” she added.
The memorandum applies to all BSP-supervised financial institutions, but implementation should reflect the nature, scale, complexity, and significance of their AI systems, as well as each institution’s operational complexity and risk profile.
The guidelines also cover outsourced service providers supporting AI-related activities under a shared responsibility model.
While voluntary and nonbinding, the principles represent the BSP’s minimum supervisory expectations for AI adoption. The central bank encouraged financial institutions to integrate them into their governance frameworks, risk management strategies, and operational processes.
Risks involving emerging technologies will continue to fall under the BSP’s existing information technology risk management framework, which covers areas such as information security, outsourcing, and project management.
The BSP said its AI governance principles align with guidelines developed by the Organization for Economic Cooperation and Development, the Association of Southeast Asian Nations, the Financial Stability Institute, and other international organizations.
The central bank said the guidelines form part of its broader push to harness technology to promote financial stability and inclusion.
