Maybank Philippines launches Islamic banking, approved by BSP for Shari’ah-compliant services

Maybank Philippines Inc. has officially commenced its Islamic banking operations, becoming the first commercial bank in the country to do so, the Bangko Sentral ng Pilipinas said on Wednesday.

This launch follows the grant of authority from the BSP last July 4, 2024, the regulator said in a statement.

Maybank held a soft launch on July 25, 2024, marking a milestone in the Philippines' Islamic finance sector.

Maybank’s Islamic Banking Unit (IBU) adheres to Shari’ah principles, setting it apart from conventional banking operations.

It is only the second IBU licensed by the BSP, following CARD Bank Inc., a microfinance-oriented rural bank that started Islamic banking in June 2023.

During the inauguration of Maybank’s IBU, BSP managing director Judith Sungsai emphasized the importance of Islamic banking in enhancing financial inclusion and fostering economic development 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," she said.

The BSP's support for Islamic banking is part of its broader commitment to financial inclusion. The central bank has also introduced regulatory reforms to encourage more domestic and foreign banks to participate in the Islamic banking sector.