The enactment of a new Islamic banking law will help the Philippines bring about financial inclusion by making banking services more accessible to sectors not served by larger players, the central bank said on Friday (Aug. 30).
In a statement, Bangko Sentral ng Pilipinas Governor Benjamin Diokno said Republic Act No. 11439 — officially named “An Act Providing for the Regulation and Organization of Islamic Banks” — “will unlock the full potential of Islamic financing in fostering inclusive economic growth.”
The law, which was signed by President Rodrigo Duterte last week, mandated the BSP to exercise regulatory powers and supervision over the operations of Islamic banks and to issue the implementing rules and regulations on Islamic banking.
Diokno said the new law would bring banking services closer to Muslim Filipinos, including those from the Bangsamoro autonomous region.
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“This is a great stride in our financial inclusion mandates,” he said.
Islamic banking operates without interest, which is prohibited by Sharia’ah law.
