The Bangko Sentral ng Pilipinas (BSP) has introduced new governance principles to guide banks and other supervised financial institutions in adopting artificial intelligence (AI) responsibly as the technology becomes more widely used in financial services.
Under Memorandum No. M-2026-031 dated June 24, 2026, the central bank issued the “Governance Principles for Artificial Intelligence in Financial Services,” which provides a framework for BSP-supervised financial institutions (BSFIs) to establish their own AI governance and risk management systems.
The BSP said the guidance seeks to encourage innovation in the financial sector while protecting consumers and preserving public confidence in the country’s financial system.
The framework is built around five core principles—Sustainability, Transparency, Accountability, Responsibility and Security, collectively known as STARS.
These principles are intended to help financial institutions develop and deploy AI systems ethically and responsibly.
“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,” Deputy Governor Lyn 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,” Javier added.
The memorandum applies to all BSFIs, although implementation must be proportionate to the nature, extent, scale, complexity and materiality of their AI systems.
Compliance should also consider each institution’s overall operational complexity and risk profile.
The framework covers outsourced service providers supporting AI-related activities under a shared responsibility model.
While the principles are voluntary and non-binding, the BSP said they represent its minimum supervisory expectations for the adoption of AI.
Financial institutions are encouraged to incorporate the principles into their governance frameworks, risk management strategies and operational processes.
Risks associated with emerging technologies will continue to be covered by the BSP’s existing Information Technology Risk Management framework, which focuses on information security, outsourcing and project management.
The BSP said the principles are aligned 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.