BSP Issues AI Governance Principles for Financial Institutions
he Bangko Sentral ng Pilipinas (BSP) issued voluntary governance principles on June 24, 2026, to guide supervised financial institutions in the adoption of artificial intelligence. The guidance, detailed in Memorandum No. M-2026-031, outlines the central bank’s minimum supervisory expectations for developing AI governance and risk management frameworks.
STARS Principles
According to the central bank, the framework promotes AI usage based on five core principles: sustainability, transparency, accountability, responsibility, and security (STARS).
BSP Deputy Governor Lyn I. Javier stated that the principles provide institutions with guidance to mitigate unintended consequences resulting from AI use. She noted the guidelines draw from developing global standards to assist institutions as they integrate the technology.
Scope and Implementation
The memorandum applies to all BSP-supervised financial institutions (BSFIs) and their outsourced service providers under a shared responsibility model. The BSP stated that implementation must be proportionate to an institution’s risk profile, overall operational complexity, and the scale of its AI systems.
While the new principles are non-binding, the BSP noted that it encourages institutions to incorporate them into existing governance, risk management, and operational processes.
Risks associated with AI and other emerging technologies continue to be regulated under the BSP’s existing Information Technology Risk Management framework. According to the central bank, this existing framework addresses information security, outsourcing, and project management.
International Alignment
The BSP stated that its AI governance principles align with guidelines developed by the Organization for Economic Cooperation and Development (OECD) and the Association of Southeast Asian Nations (ASEAN). The framework also incorporates standards from the Financial Stability Institute (FSI) and other international organizations.
This article is published on BitPinas: BSP Issues AI Governance Principles for Financial Institutions
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