President Rodrigo Duterte has approved the creation of a ‘regulatory framework’ for Islamic banking after the creation of the Bangsamoro Region.
Duterte has signed into law Republic Act No. 11439 which aims to provide better financial access to Muslim Filipinos and businessmen.
It will also include financial arrangements that comply with Shari’ah principles.
The President signed the law on August 22.
The new law will regulate Islamic banks under the Bangko Sentral ng Pilipinas.
“This is expected to widen opportunities for Muslim Filipinos, including those from the Bangsamoro Region, in accessing banking products and services. This is a great stride in our financial inclusion mandates,” Bangko Sentral ng Pilipinas Governor Ben Diokno said in a statement.
Diokno hopes that the Islamic community will participate in this new financial inclusion mandate.
“With a well-defined regulatory framework now in place, the BSP looks forward to seeing greater participation in Islamic financing by both domestic and foreign banks,” Diokno added.
An Islamic bank is defined as a business with objectives and operations that do not involve interest or riba, which is prohibited by the Shari’ah.