ISLAMIC BANKING IN THE PHILIPPINES - THE REALITIES OF 2019
The article notes that the General Banking Law of 2000 of the Philippines recognizes Islamic banks as a category of banking institutions, but the Central Bank of the Philippines (BSP), The banking industry regulator has not yet issued a circular allowing local banks (including local branches of foreign banks) to create Islamic banking units. To date, none of the traditional banks in the country has departments of Islamic banking. The Philippines officially recognized Islamic banking 40 years ago when Al Amanah Bank, the first Islamic bank in the country established to meet the financial needs of the Muslim population, was established. The new Organic Law for the Bangsamoro Autonomous Region in Muslim Mindanao 2019 contains provisions for the Bangsamoro government to encourage the creation of: a) banks, financial institutions and their branches, including Islamic banking units in national and foreign traditional banks; and b) offshore units of foreign banks within the Bangsamoro Autonomous Region in accordance with the principles of the Islamic banking system.