No person or entity shall engage in banking operations or quasi-banking functions in the Philippines without authority from the BSP. A financial institution that has been given authority to engage in universal or commercial bank activities is also authorized to engage in quasi-banking activities.

The following banking or quasi-banking activities are regulated in the Philippines:

• Maintaining adequate risk-based capital – The Monetary Board prescribes the minimum ratio that the net worth of a bank must bear to its total risk assets, which may include contingent accounts. The minimum capital requirements of banks are found in the MORB.
• Accepting demand deposits – A bank other than a universal or commercial bank cannot accept or create demand deposits except upon prior approval of, and subject to such conditions and rules as may be prescribed by the Monetary Board.
• Granting loans or credit accommodations – Regulation covers credit exposure, use of loan proceeds, interest and other charges, and disclosure requirements in the grant of secured or unsecured loans. Among other guidelines, the BSP imposes the Single Borrower’s Limit and regulates credit accommodations granted by banks to its directors, officers, stockholders and their related interests.
• Issuing foreign letters of credit and pay/accept/negotiate import and export drafts/bills of exchange – For non-universal or non-commercial banks, prior approval of the BSP is required before engaging in these activities.
• Establishing a subsidiary, regional or operating headquarters, or local branch in the Philippines by a foreign bank – No bank operating in the Philippines shall establish branches, extension offices or other banking offices, or transact business outside the premises of its duly authorized principal office or head office without the prior approval of the Monetary Board.
• Selling or relocating banks, closing banks and conservatorships – The BSP regulates and/or approves any change in ownership, location or status of a bank or any other financial institution.
• Disclosing confidential information or credit data – Philippine law promotes secrecy of bank deposits (both local and foreign), but subject to exceptions such as those contained in the Anti-Money Laundering Act.
• Insuring deposits – All banks and financial institutions are required to coordinate with the Philippine Deposit Insurance Corporation in insuring its deposits.
• Borrowing from the BSP or other agencies of the government – There is an application procedure that must be followed when a BSP-registered bank or non-bank financial institution borrows (including emergency loans and advances) from the BSP or the government.
• Foreign exchange transactions – There are regulations for foreign exchange transactions, including, among others, current accounts, deposits, forwards and swaps, foreign merchandise trade transactions (import and export), loans and guarantees, foreign investments, offshore banking, foreign currency deposit units and expanded foreign currency deposit units, and transactions with representative offices of foreign banks.
• Reporting requirements – Banks and financial institutions are required to regularly report certain transactions to the BSP. Minimum auditing standards must be complied with.

The BSP also regulates virtual asset service providers. Under BSP regulations, "virtual asset" refers to any type of digital unit that can be digitally traded or transferred and can be used for payment or investment purposes. BSP regulations cover virtual asset service providers or entities that offer services or engages in activities that provide facility for the transfer or exchange of virtual assets. A virtual asset provider must secure a Certificate of Authority to operate and register with the BSP.

Insurance companies and intermediaries are also required to obtain the appropriate license from the IC.

An entity engaged in the business of extending credit facilities to consumers and to industrial, commercial or agricultural enterprises by direct lending or by discounting or factoring commercial papers or accounts receivable, or by buying and selling contracts, leases, chattel mortgages or other evidence of indebtedness, or by financial leasing, is required to obtain a license as a financing company from the SEC. Further, an entity engaged in granting loans from its own capital funds or from funds sourced from not more than 19 persons must be licensed as a lending company. Investment companies, investment company advisers, and fund managers must also obtain the required investment license from the SEC.