BSP Hosts First Iftar to Boost Islamic Finance

The Bangko Sentral ng Pilipinas hosted its first Iftar on March 27, 2025, at its Manila head office.

The event aimed to strengthen cooperation in promoting Islamic banking and finance in the Philippines.

Iftar is a communal meal held at sunset to mark the end of fasting during Ramadan.

The gathering brought together key Islamic finance stakeholders, including members of the Islamic Finance Coordination Forum and the Shari’ah Supervisory Board in the Bangsamoro Region.

Attendees pledged to advance Islamic banking and finance, promote inclusivity, and celebrate diversity.

BSP Deputy Governor Chuchi G. Fonacier, adviser of the BSP-led IFCF, emphasized the shared values of unity and inclusion that define both the Iftar tradition and the BSP’s Islamic finance efforts.

“Islamic finance is built on the same principle of inclusion,” Fonacier said.

“Just as everyone is welcome at this communal gathering, so too must our financial system be open, accessible, and responsive to the diverse needs of all Filipinos regardless of faith.”

BSP Assistant Governor Arifa A. Ala, chairperson of the IFCF, highlighted the importance of unified efforts to support the sustained growth of Islamic finance in the country.

“Through the collective efforts of the IFCF, I am confident that Islamic finance in the Philippines will flourish, bringing economic empowerment and opportunities to more Filipinos, regardless of faith,” she said.

The event also celebrated milestones such as the licensing of new Islamic banking players, the entry of additional takaful operators, and the successful issuance of the country’s USD1 billion maiden sovereign sukuk.

Islamic banking and finance follow Shari’ah principles, ensuring services do not involve interest or “riba,” which is prohibited.

Instead, they offer alternative ways to generate income.

For Muslims, these services provide access to formal financial systems without compromising Islamic teachings.

For non-Muslims, they present alternative financial products and services.

Also present were representatives from the Monetary Board, including Member Rosalia V. De Leon, and officials from various government agencies.