THE Islamic Finance Coordination Forum (IFCF) said that its members were committed to further promoting Islamic banking and finance in the country.
In a statement, the Bangko Sentral ng Pilipinas (BSP) said that the IFCF is also planning to conduct a market study and roadshows to further promote Islamic banking and finance in the Philippines to both local and international stakeholders.
“The BSP values the strong commitment of each IFCF-member agency/institution in undertaking, prioritizing and coordinating relevant initiatives that complement the BSP’s prudential regulatory reforms and initiatives on Islamic banking and finance,” said BSP Assistant Governor Arifa Ala, lead advocate on Islamic Banking and Finance and IFCF chairman.
The BSP-led IFCF is responsible for coordinating discussions and collaboration among members of the government to promote and develop Islamic banking and finance, including regulatory and policy coordination.
Ala highlighted that the IFCF’s close collaboration and cooperation had led to important achievements, including the formation of the Shari’ah Supervisory Board in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM), implementation of tax neutrality regulations by the Bureau of Internal Revenue (BIR) and the introduction of baseline takaful (Islamic insurance) regulations by the Insurance Commission.
“These jump-start the growth of the Philippine Islamic capital market and takaful; and make our country ready for the entry of Islamic finance players and investors,” Ala said.
Additionally, Ala said that they were preparing for the first issuance of a sovereign sukuk as well as developing and putting into action Islamic finance-related programs, activities and projects in the BARMM.
The IFCF aims to demonstrate the potential of the Philippine Islamic finance market to potential local and international stakeholders, investors and participants.
It is also a formal platform that evolved from the Interagency Working Group on Islamic Banking and Finance, which was tasked with initiating cooperation to finalize the draft bill that became the Islamic Banking Law in 2019.
The IFCF now consists of 12 member-agencies and institutions, including the BSP, Asian Development Bank, Auditing and Assurance Standards Council, Bangsamoro Government, Bureau of the Treasury and BIR. The Department of Trade and Industry, Insurance Commission, National Commission on Muslim Filipinos, Philippine Deposit Insurance Corp., Philippine Financial and Sustainability Reporting Standards Council and the Securities and Exchange Commission are also member-agencies of the IFCF.
“The BSP will continue to foster collaboration and cooperation under the IFCF and with other relevant stakeholders to spur the development of the Philippine Islamic banking industry and fully realize the shared vision to develop a vibrant Islamic finance ecosystem in the country,” the central bank said.—The Manila Times
