ABS-CBN
Bangko Sentral eases rules for Islamic banking units
The Bangko Sentral ng Pilipinas (BSP) has approved simplified regulatory guidelines for Islamic banks and Islamic banking units to encourage more players and develop the country's Islamic finance market.
Islamic banking operates without interest, adhering to Shari'ah Law principles, and Republic Act 11439 defines its framework.
New Islamic banks and banking units are no longer obligated to submit a capital buildup plan and are not subject to a separate capital requirement; conventional banks with Islamic units will follow their existing capital requirements.
An observation period of up to three years is now in place to help these entities adapt to data requirements, guidelines, and system adjustments.
Islamic banking units are also no longer required to submit a separate liquidity report, as it can now be integrated with the bank-wide liquidity report.
The BSP aims for these changes to support inclusive growth and a more diverse financial sector.
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