The Bangko Sentral ng Pilipinas (BSP) announced recently that it has successfully engaged with the Philippine Embassy in Riyadh, Kingdom of Saudi Arabia in promoting the BSP’s initiatives to develop Islamic banking and finance in the Philippines.
BSP Assistant Governor Atty. Arifa A. Ala, Lead Advocate on Islamic Banking and Finance and also the Chairperson of the Islamic Finance Coordination Forum, led the briefing at the Philippine Embassy in Riyadh on “Islamic Banking and Finance in the Philippines” last August 17, 2023, for the stakeholders in Saudi Arabia, including Philippine Embassy staff and their dependents.
The top left photo shows BSP Assistant Governor (AG) Arifa A. Ala with Philippine Embassy Officials led by Rommel A. Romato, First Secretary and Consul General and Chargé d’Affaires. The top right photo shows her receiving a certificate of appreciation from Chargé d’Affaires Romato. The bottom left photo shows AG Ala during her presentation while the bottom right photo shows briefing participants at the Philippine Embassy in Riyadh, Kingdom of Saudi Arabia. (IMAGE CREDIT: Philippine Embassy in Riyadh, Saudi Arabia).
Lauding the Philippine Embassy’s commitment to providing the best possible services to Filipinos in Saudi Arabia, Assistant Governor Ala shared the major milestones in the development of the Philippines’ Islamic banking and finance ecosystem.
In a press statement, Assistant Governor Ala emphasized the vast opportunities for investments and potential benefits in terms of wider reach and greater financial inclusion that an expanding Islamic banking and finance industry can bring to the country and Filipinos abroad.
“The business model of Islamic banking is beneficial to all types of banking clients regardless of religion,” AG Ala said.
‘Hence, the goal is to provide the public, in general, whether Muslims or non-Muslims, with appropriate financial choices that suit their risk appetite and financial needs and make the Philippines aligned with global developments,” she added.
Islamic banking is consistent with BSP’s goal of financial inclusion in PH
The Bangko Sentral ng Pilipinas (BSP) supports the development of Islamic banking and finance in the country, consistent with the goal of financial inclusion of all Filipinos.
The central bank’s strategy of promoting Islamic banking and finance also supports its financial stability mandate since the business model of Islamic banking and finance emphasizes Shari’ah governance and risk-sharing principles to foster equity, justice, and transparency.
According to the BSP, Islamic banking and finance serves everyone — granting Muslims much-needed access to financial services and providing non-Muslims with alternative banking and finance options.
By applying the same regulations to conventional and Islamic banks — with supplemental guidelines for the unique features of Islamic banking — the BSP enables a level playing field that allows Islamic banks to thrive and serve all Filipinos.
