The Bangko Sentral ng Pilipinas Pushes for Shariah Board to Facilitate Creation of Islamic Banks

According to a speech made on behalf of Chuchi Fonacier, Deputy Governor of The Bangko Sentral ng Pilipinas (BSP), Financial Supervision Subsector Managing Director of the BSP, Arifa Ala, said that the Republic Act 11054, also known as the Organic Law for the Bangsamoro Autonomous Region in Muslim Mindanao, calls for the establishment of a Shariah Supervisory Board. This would ultimately pave the way for the setting up of Islamic banks in the Philippines. The BSP is lobbying for this to be set up within the year 2021.

Why it Matters?

The BSP is optimistic about the future of Islamic finance in the country after the establishment of a regulatory framework and a supportive environment for Islamic banking to flourish. The regulator has also involved its...