Maybank Philippines, Inc. has started its Islamic banking operations and has become the country’s third lender operating under the shari’ah principles.
On Wednesday, the Bangko Sentral ng Pilipinas (BSP) said Maybank PH first received its Islamic banking license in July this year and subsequently embarked on a soft launch of its services in mid-August.
Its license is the second such authority the BSP has issued since the first one was issued to the Islamic branch of CARD Bank Inc. (A Microfinance-Oriented Rural Bank) in June last year. The pioneering Al Amanah Islamic Investment Bank of the Philippines is chartered under Republic Act 6848 or through legislation.
Under BSP regulations, an IBU is a division, department, office, or branch of a conventional bank that operates in accordance with Shari’ah principles.
Maybank, which held a soft launch for its Islamic banking operations on 25 July 2024, is the first commercial bank in the country to have IBU license.
At the Maybank IBU inauguration, BSP managing director Judith E. Sungsai said the integration of Islamic banking in Maybank’s operations is a significant milestone in the development of Islamic finance in the Philippines.
“The BSP will continue to work closely with industry players to ensure the robust and sustainable growth of the Islamic banking sector,” Sungsai said.
The BSP supports the entry of new players in the Islamic banking sector as part of its broader commitment to enhancing financial inclusion and fostering economic development.
The BSP has also introduced regulatory reforms to encourage greater participation in Islamic banking by both domestic and foreign banks.
