Two firms eye Islamic banking operations in the Philippines

Maybank Philippines, along with another foreign entity, plans to introduce Islamic banking operations in the country, according to the Bangko Sentral ng Pilipinas (BSP). BSP Assistant Governor Arifa Ala revealed that discussions have been ongoing about establishing an Islamic banking unit, which operates under Shari’ah law and avoids interests as mandated by Shari’ah principles. Currently, the Philippines hosts two Islamic banks, but the addition of Maybank’s Islamic banking window could enhance financial inclusion, particularly in the Bangsamoro region where banking access is limited. BSP Governor Eli Remolona Jr. emphasised the potential of Islamic banking to integrate more people into the formal banking system.