Foreign Islamic banks may soon be able to set up shop in the Philippines | Asian Banking & Finance
1 view

Foreign Islamic banks may soon be able to set up shop in the Philippines

A bill seeking to organise such lenders has passed committee level.

Islamic banking is gaining momentum in the Philippines after a bill seeking to organise and regulate Islamic banks has made it through the committee level at the House of Representatives, according to a report by state news agency PNA. 

Under Republic Act 7721, the central bank’s Monetary Board may authorise the establishment of Islamic banks which is defined as a banking business whose business transactions are in accordance with Shariáh principles and do not involve interest (riba) which is prohibited by laws.

It may also authorise conventional banks to engage in Islamic banking arrangements through a designated Islamic banking unit within the bank.

Foreign Islamic banks can also establish banking operations in the Philippines.

Around 6.01% of the Philippines' total population are Muslims with the southernmost island group of Mindanao home to the majority or around 93% of Filipino Muslims. 

Get Asian Banking & Finance in your inbox
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

The number of HNWIs is expected to reach 3.9 million in 2021 or 60.6% of the population.
Banks have to remain consistent and continuous in testing best practices.
Shares were priced at the top end, at KRW39,000 ($34).
In January, 1.2 million transactions were carried out via the SGQR.
Its launch will require legal changes to the nation’s foreign exchange and IT rules.
But less than half of consumers are impressed with the digital financial services currently offered.
Treasury teams can mobilize liquidity and fund intraday payments in real-time.
Customers have the option to pay their tax balances in full or partially.
About 750 new accounts have been opened in four APAC markets through the new portal.
UnionDigital will be a wholly-owned subsidiary of the Philippine lender.
SmartStream’s Peter Hainz and Amazon Web Services’ Anna Green shared their insights on the advantages of on-demand and highly scalable cloud environments for banks and other financial institutions, as well as the factors hindering its adoption in the region.
This August, the Asian Banking & Finance and SAP will provide insights on the evolving landscape for ESG in financial services.
Thirteen lenders noted that demand was moderately weaker than the preceding 3-month period.
Investors will likely seek signs that private lenders will be able to step up lending once COVID subsides.