The Central Bank of the Philippines has issued governance principles to guide BSP-supervised financial institutions in adopting artificial intelligence in financial services. The memorandum sets out voluntary, non-binding principles that the central bank describes as its minimum supervisory expectations for AI adoption, with the aim of supporting innovation while protecting consumers and preserving trust in the financial system. The guidance applies to all BSP-supervised financial institutions and is intended to support firms in building their own AI governance and risk management frameworks. It is built around five principles under the STARS framework: sustainability, transparency, accountability, responsibility and security. Implementation is expected to be proportionate to the nature, scale, complexity and materiality of a firm's AI systems, as well as its overall operational complexity and risk profile. The memorandum also covers outsourced service providers involved in AI-related activities under a shared responsibility model. Institutions are encouraged to embed the principles in governance, risk management and operational processes, while risks tied to emerging technologies remain covered by the existing Information Technology Risk Management framework, including information security, outsourcing and project management.
Central Bank of the Philippines2026-07-14
Central Bank of the Philippines issues voluntary AI governance principles for supervised financial institutions
The Central Bank of the Philippines has issued voluntary AI governance principles for all BSP-supervised financial institutions. The STARS-based guidance sets minimum supervisory expectations for firms developing AI governance and risk management frameworks, with proportionate application based on the scale and risk of their AI use. It also covers outsourced providers involved in AI-related activities under a shared responsibility model.