Bangko Sentral ng Pilipinas to Maintain Flexible Approach to Attract Islamic Banking Players

Governor of Bangko Sentral ng Pilipinas (BSP), Benjamin Diokno, has stated that the bank would maintain flexibility in its approach to attract industry players to the Islamic banking sector in the Philippines. Speaking at a recent virtual press conference, Diokno noted that this flexibility would enable banks to thrive in the new environment ever since the Republic Act 11439 (an act providing for the regulation and organisation of Islamic banks) was signed into the law in the country in 2019.

Why it Matters?

Regulatory reforms on Islamic bank licensing, Shariah governance, as well as taxation have been instrumental in making the country an attractive centre for Islamic banking. Diokno elaborated that the reforms convey to the market that the Philippi...