Banking & Finance
Philippines Plans to Allow Banks to Set up Islamic Banking Units
(Bloomberg) –Bangko Sentral ng Pilipinas is leaning toward allowing local lenders to set up Islamic banking subsidiaries, as it steps up efforts to promote Shariah-compliant finance in the country.
“The BSP is pushing for an open approach where conventional banks can operate Islamic banking windows or to establish subsidiary Islamic banks,” the central bank’s Deputy Governor Chuchi Fonacier told Bloomberg News via email.
The government passed a law in August to promote Islamic finance, which represents a small proportion of the banking industry even though about 10% of the population is Muslim. The country has 45 universal and commercial bank groups, only one of which — the Al-Amanah Islamic Investment Bank of the Philippines — operates under Shariah principles.
Read: Banks Must Act Now or Risk Becoming a ‘Footnote’
The August law said local banks may be allowed to “engage in Islamic banking arrangements” but left it up to the central bank to work out the details. Operating fully fledged subsidiaries would allow lenders to offer a wider range of Shariah-compliant services than through a window, which remains part of the parent bank.
The BSP wants to issue the implementing rules for the new law before the end of the year, Fonacier said. Foreign Shariah-compliant banks will also be allowed to operate locally, she added.
“Islamic banking in the Philippines is promising,” she said.
-
OER Magazines1 month ago
OER, September 2024
-
Alamaliktistaad Magazines2 months ago
Al-iktisaad, September 24
-
Uncategorized4 weeks ago
Oman Oil Marketing Company partners with Ihsaan Association to support its activities
-
Commodities1 month ago
Gold Rangebound as Investors Brace for Key US Economic Data
-
Banking & Finance1 month ago
Apple Pay Officially Launched in Oman
-
Oil & Gas4 weeks ago
OQEP Appoints United Securities as Liquidity Provider Ahead of Landmark MSX Listing
-
Lifestyle1 month ago
Royal Opera House Muscat Welcomes First Shows of its 2024/25 Season
-
Investment1 month ago
With Over RO600M in Foreign Investments, Future Fund Oman Unveils the First Batch of Investment Projects with an Overall Value of RO830M+