Philippines eases digital bank cap as industry fights for profits

MANILA — Years after the first digital banking group launched in the Philippines, the country's central bank has opened the door for others to enter the market. However, experts are divided on the outlook for new entrants and the industry as a whole, with leading companies still struggling to turn a profit and manage credit risk.

The Bangko Sentral ng Pilipinas (BSP), the central bank, lifted the moratorium on new licenses for digital banks and the change will take effect on January 1, marking a step forward in the government's efforts to boost digitization and promote financial inclusion.

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