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.
-
Economy2 months agoOMIFCO IPO: Price, Dividends, Subscription Dates and Listing – Here’s Everything You Need to Know
-
Magazines1 month agoOER May 2026 Edition: The Digital Copy
-
News4 weeks agoINVESTIGATION: Why Nokia Could Matter More in the Quantum Age Than It Ever Did in Mobile
-
Investment1 month agoWhy Are Tech Stocks Rising Again – And Is It Too Late To Invest In Them?
-
News4 weeks agoINVESTIGATION: Is AI in a Bubble? Inside the Trillion-Dollar Question Reshaping Global Markets
-
Magazines2 months agoSignature Oman: May 2026 Edition
-
Banking & Finance2 months agoOman Arab Bank marks successful listing of $400mn AT1 Bond on London Stock Exchange
-
Economy4 weeks agoOMIFCO Successfully Completes Bookbuilding & Sets Final IPO Offer Price
