The Bangko Sentral ng Pilipinas (BSP) has granted Maybank Philippines, Incorporated, permission to operate an Islamic bank, bringing the number of Islamic banks in the country to two.
In a statement on Wednesday, the BSP said Maybank started its Islamic banking operations on August 14 after receiving the grant of authority on July 4. "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," the BSP said in the statement.
Under BSP regulations, an IBU is a division, department, office, or branch of a conventional bank that operates according to Shari'ah principles. Maybank, which held a soft launch for its Islamic banking operations on 25, is the first commercial bank in the country to have an IBU license.
During the inauguration of Maybank's IBU, BSP managing director Judith E. Sungsai underscored that integrating Islamic banking into Maybank's operations is a significant milestone in developing 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 added.
Maybank Philippines has officially entered Islamic finance and became the first private commercial bank in the country to offer Shariah-compliant banking services.
Last month, Maybank launched its Islamic Banking Unit in its Zamboanga Branch, marking a significant step in expanding the bank's portfolio of inclusive financial solutions that align with its customers' life priorities, values, and aspirations.
In his opening remarks, Maybank Islamic deputy CEO Nor Shahrizan Sulaiman said, "The Maybank Group had set a goal for its Islamic banking operations—to become a Global Leader in Islamic Finance. Expanding the offering of Islamic banking products here, in a country not Muslim-dominated, is another progress for us to mark our presence regionally."
He added, "We strongly believe that the banking sector must create a strong sense of purpose that reflects the needs and concerns of society – such as promoting sustainable finance and assuring inclusive access to financial services. Only then can we realize the full potential of positive finance in advancing social and economic development."
This new Islamic Banking Unit is dedicated to offering Shariah-compliant products that align with Islamic principles as an alternative banking opportunity, particularly in areas where such services are not yet available.
Commenting on the launch, country director and concurrent Maybank Philippines president and CEO Abigail Tina M. Del Rosario said, "This is a significant milestone for Maybank in the Philippines. Introducing Islamic Banking in the country is not just about another expansion of our services; this also demonstrates our commitment to fairness, transparency, and the community's well-being. Islamic finance is built on the foundation of fairness, equity, and shared prosperity—principles that resonate deeply with us as an organization."
Del Rosario added, "We are committed to providing financial solutions aligned with our customers' life priorities, values, and aspirations while also contributing to the growth of the Islamic finance industry in the Philippines."
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 domestic and foreign banks' more significant participation in Islamic banking.
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