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MANILA: The Philippines now has two operating Islamic banking units (IBUs) that aim to enhance financial inclusion across the country.
In a statement Wednesday, the Bangko Sentral ng Pilipinas (BSP) said Maybank Philippines, Inc. started its Islamic banking operations last Aug. 14 after receiving IBU license from the central bank on July 4, 2024.
Prior to Maybank, BSP granted the first license to operate an IBU to CARD Bank, Inc. in June 2023.
Maybank is the first commercial bank in the country that operated an IBU.
‘Under BSP regulations, an IBU is (a) division, office, or branch of a conventional bank that operates in accordance with Shariah principles,’ the central bank said.
BSP Managing Director Judith Sungsai said Maybank’s IBU marks a significant milestone in developing the country’s Islamic financing.
She said the central bank supports the entry of new players in the Islamic banking sector by introducing regulatory reforms to encourage domestic and foreign banks to set up their IBUs here.
‘The
BSP will continue to work closely with industry players to ensure the robust and sustainable growth of the Islamic banking sector,’ Sungsai said.
According to its website, Maybank currently offers Shariah-compliant savings and current accounts.
It added this service is also available to both Muslim and non-Muslim customers.
Islamic financing will be soon offered once Maybank obtains Shariah-compliant funding.
Source: Philippines News agency
