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.
-
Banking & Finance4 weeks ago
Oman Arab Bank Announces Increase of Authorised Capital to RO500mn and Paid‑In Capital Boost of RO50mn
-
OER Magazines2 months ago
OER, May 2025
-
Alamaliktistaad Magazines2 months ago
Al-Iktisaad, May 25
-
Bahrain4 weeks ago
SPIEF 2025 focused on global and regional economic processes, market transformation, new tech, investment climate, financial policy and people
-
Banking & Finance2 months ago
Central Bank of Oman Issues Regulatory Framework for Digital Banks
-
Banking & Finance2 months ago
United Finance Company: Strategically Serving Oman’s Auto Market with Faster, Customer-First Solutions
-
Insurance2 months ago
Liva Insurance Sets New Benchmark with ‘Innovative Insurer of the Year’ Award at the New Age Banking Summit 2025
-
Banking & Finance1 month ago
The Future of the International Financial System to be discussed at SPIEF 2025