BSP pushes Islamic banking

THE BANGKO SENTRAL ng Pilipinas (BSP) has reaffirmed its commitment to expanding Islamic banking and finance in the Philippines, aiming to widen access to Shari’ah-compliant financial products and promote greater financial inclusion.

“Our goal is not simply for Islamic finance to exist alongside conventional banking, but for it to flourish as an integral and mutually reinforcing part of our financial ecosystem, broadening access to finance and serving communities that have long aspired for financial services aligned with their values,” BSP Deputy Governor Lyn I. Javier said in a statement on Thursday.

The central bank said building an inclusive financial system requires accommodating the cultural and religious traditions of all Filipinos.

BSP Senior Assistant Governor and Islamic Finance Coordination Forum (IFCF) Chairperson Arifa A. Ala said the regulator’s efforts extend beyond policy, citing the importance of engagement with communities.

“The Bangko Sentral plays a key role in advancing Islamic finance, but tonight’s gathering reflects something broader — it affirms our belief that a truly inclusive financial system must also respond to the traditions, values and needs of the communities we serve,” she said.

The remarks followed the BSP’s annual evening meal with stakeholders including the IFCF, Bangsamoro government, National Commission on Muslim Filipinos, Islamic banking institutions, government agencies and the diplomatic corps.

The IFCF, a BSP-led interagency body, coordinates initiatives to promote Islamic finance, including regulatory frameworks, licensing of Islamic banking and takaful institutions, and sukuk issuances. Its members include the BSP, Asian Development Bank, Bureau of the Treasury, Department of Trade and Industry, Insurance Commission, Philippine Deposit Insurance Corp., Securities and Exchange Commission and other agencies.

“IFCF continues to push collaboration in Islamic banking and finance,” the BSP said. “Its work has led to milestones such as roadshows here and abroad, sukuk and regulatory framework issuances, and licensing of Islamic banking and takaful players.” — Katherine K. Chan