BSP: 2 foreign players keen on putting up Islamic banking ops in PH

Two foreign players have expressed their intent to apply for an Islamic Banking Window (IBW) license in the country to complement the three existing players in the sector, a top official of the Bangko Sentral ng Pilipinas (BSP) said Tuesday.

According to BSP assistant governor Arifa Ala, the two foreign players have already engaged and held meetings with the central bank, but have yet to formally process their applications.

“There are a number of banks and non-banks which signified interest, but I cannot disclose yet because they have not really submitted formal application but there are a number of interested potential investors,” she said on the sidelines of the Philippine Islamic Finance Roadshow in Makati City.

Sought for more details, Ala said one of the potential investors already has some operations in the country, while the other will mark its entry into the Philippines.

At present, there are three Islamic banking players in the country — Maybank Philippines, CARD Bank Inc., and Al Amanah Islamic Investment Bank.

Islamic banking is based on the Shari’ah Principle, with a defined system to ensure that there is effective and independent oversight of compliance with the practical divine law deduced from its legitimate sources — the Qu’ran, Sunnah, consensus of Muslim scholars, analogical deduction, and other approved sources.

The BSP is looking to promote Islamic banking as a means to boost financial inclusion in the country, as in April it said only 8% in the Bangsamoro region have bank accounts, while the remaining 92% were unbanked.

Moving forward, Remolona said the BSP continues to target to have 70% of the population included in the financial system or have bank accounts. — RSJ, GMA Integrated News