The Bangko Sentral ng Pilipinas (BSP) announced on Wednesday that Maybank Philippines and a foreign entity are eyeing the establishment of Islamic banking operations in the country.
The initiative is seen as a move to diversify the Philippines’ banking sector and cater to the specific financial needs of its Muslim population.
In a briefing held at the BSP Office in Manila, BSP Assistant Governor Arifa Ala disclosed that Maybank is planning to set up an Islamic banking window.
“We are seeing two potential applicants, but they have not yet submitted applications. But we have held meetings with them already, discussing the requirements for establishing the Islamic banking unit,” Ala said.
Ala noted that while the applications have not been officially submitted, discussions are ongoing, and there is anticipation that Maybank might file within the month after aligning with the requisite conditions laid out by the BSP.
Under Republic Act 11439, Islamic banking is defined as operations adhering to the Shari’ah, prohibiting the involvement of interest in transactions.
Shari’ah-compliant assets exclude financing for sectors like alcohol production and gambling.
Currently, the Philippines hosts two Islamic banks — Amanah Islamic Bank and CARD Bank — which serve a critical role in promoting financial inclusion, especially in predominantly Muslim regions.
BSP Governor Eli Remolona Jr. emphasized the importance of Islamic banking in enhancing financial inclusion, particularly in the Bangsamoro area, where bank account penetration is notably low at only 8 percent.
“By introducing Islamic Banking, we can bring more people into the formal banking system,” he said.
Remolona Jr. further elaborated on the BSP’s broader vision, saying, “What we want to do is create an inclusive banking system, a sustainable and vibrant Islamic finance ecosystem within the country to complement the banking system we already have,” positioning Islamic banking as a vital component of the nation’s financial landscape.
