The Bangko Sentral ng Pilipinas (BSP) has introduced a new set of voluntary governance principles to guide BSP-supervised financial institutions (BSFIs) in safely adopting artificial intelligence. Issued in June under Memorandum No. M-2026-031, the framework helps institutions innovate and improve customer service while protecting consumers, managing risks, and maintaining trust in the financial system.
The new guidelines are built around five core ethical principles known as STARS: sustainability, transparency, accountability, responsibility, and security. BSP deputy governor Lyn I. Javier noted the principles, which align with international standards from organizations like the OECD and ASEAN, are designed to help banks leverage AI technology while mitigating its unintended consequences.
The memorandum applies to all BSFIs, including their outsourced AI service providers under a shared responsibility model. Implementation is meant to be flexible and scaled according to the complexity and risk profile of each institution’s specific AI systems. While these principles are currently non-binding, they represent the BSP’s minimum supervisory expectations for AI adoption. Any broader risks associated with the technology will continue to be managed under the BSP’s existing Information Technology Risk Management framework.
