The Market Monitor Minding the Nation's Business
Maybank Philippines, Incorporated officially started its Islamic banking operations on August 14, 2024, after receiving the grant of authority from the Bangko Sentral ng Pilipinas (BSP) on July 4 2024.
This is the second Islamic banking unit (IBU) licensed by the BSP. The first was CARD Bank, Inc. (A Microfinance-Oriented Rural Bank) in June 2023.
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 July 25, 2024, is the first commercial bank in the country to have IBU license.
During the inauguration of Maybank’s IBU, BSP Managing Director Judith E. Sungsai underscored that 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,” Managing Director Sungsai added.
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.