Reforms through the years have also bolstered capitalization – overall bank capitalization is comfortably above local and international standards. Bank loans (majority of which went to productive sectors) continues to expand at double-digit rates. But this is not enough. As a regulator, BSP supports responsible fintech innovations given its link to increased efficiencies and financial inclusion.
We have refined regulations to effectively respond to trends in digitalization, fintech and technology-related risks while still remaining supportive of financial innovation. Innovations are allowed to flourish while ensuring risks are managed and consumer welfare is protected. We also protect the integrity of the financial system. To achieve this, we have issued various regulations.