BSP issues AI governance principles
Analysis based on 9 articles · First reported Jun 29, 2026 · Last updated Jul 15, 2026
The voluntary guidelines provide a framework for responsible AI adoption in Philippine financial services, potentially reducing regulatory uncertainty and encouraging innovation. However, as non-binding, the immediate market impact is limited, with long-term effects depending on future enforcement and adoption rates.
The Philippines — Bangko Sentral ng Pilipinas (BSP) issued voluntary governance principles for artificial intelligence (AI) use by BSP-supervised financial institutions (BSFIs) through Memorandum No. M-2026-031 on June 24, 2026. The principles, known as STARS (sustainability, transparency, accountability, responsibility, security), aim to guide BSFIs in developing their own AI governance and risk management frameworks while promoting innovation and protecting consumers. The guidance is non-binding but reflects the BSP's minimum supervisory expectations. It applies to all BSFIs and covers outsourced service providers under a shared responsibility model. The principles align with international standards from the OECD, ASEAN, and the Financial Stability Institute.
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