The Philippines’ central bank said that it has been promoting Islamic banking and finance initiatives in the country and held consultations in Saudi Arabia to expand the sector.
The Bangko Sentral ng Pilipinas has been actively promoting Islamic finance in the country, and the possibilities for its development have been growing since last month, when the country’s monetary board approved the first Islamic banking unit license for a traditional bank.
The decision expanded the possibility for foreign and private banks to tap into the market. Earlier, it was limited to the state-owned Al-Amanah Islamic Investment Bank of the Philippines.
“The BSP’s strategy of promoting Islamic banking and finance supports the BSP’s financial stability mandate as (the) Islamic banking and finance business model emphasizes Shariah governance and risk sharing principles to foster equity, justice and transparency,” the central bank said in a statement.
To expand the sector further, Arifa A. Ala, the bank’s assistant governor who is a lead advocate on Islamic banking and finance and chairs the Islamic Finance Coordination Forum, held a briefing for Saudi and Filipino stakeholders at the Philippine Embassy in Riyadh on Aug. 17.
Themed “Islamic Banking and Finance in the Philippines,” the session highlighted investment opportunities and the potential to expand financial inclusion in the Catholic-majority Philippines and for Filipinos abroad.
“The business model of Islamic banking is beneficial to all types of banking clients regardless of religion,” Ala said.
“The goal is to provide the public, in general, whether Muslims or non-Muslims, with appropriate financial choices that suit their risk appetite and financial needs and make the Philippines aligned with global developments.”
Ala has briefed investors in Riyadh on the initiatives undertaken in the Philippines to expand the sector.
“Assistant Gov. Ala shared the major milestones in the development of the Philippines’ Islamic banking and finance ecosystem,” the BSP said. “(She) emphasized the vast opportunities for investments and potential benefits in terms of wider reach.”—AN
