BSP hosts second Iftar for Islamic finance

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The Bangko Sentral ng Pilipinas hosted its second Iftar at its Manila head office on 10 March 2026, as the central bank sought to deepen collaboration with government agencies, financial institutions and community stakeholders in expanding Islamic banking and finance in the country.

The BSP said the gathering was part of its continuing effort to strengthen partnerships that support Islamic finance and widen access to Shari’ah-compliant financial services in the Philippines.

Iftar is the communal sunset meal that marks the end of a day’s fast during Ramadhan.

This year’s event brought together representatives from the Islamic Finance Coordination Forum, the Bangsamoro government, the National Commission on Muslim Filipinos, the BSP Muslim community, the Shari’ah Supervisory Board, Islamic banking and finance institutions, national government agencies and regulatory bodies, and members of the diplomatic corps.

The central bank said the forum has continued to push collaboration in Islamic banking and finance, with work that has contributed to milestones including roadshows in the Philippines and overseas, sukuk and regulatory framework issuances, and the licensing of Islamic banking and takaful players.

According to BSP Deputy Governor Lyn I. Javier, “Our goal is not simply for Islamic finance to exist alongside conventional banking, but for it to flourish as an integral and mutually reinforcing part of our financial ecosystem, broadening access to finance and serving communities that have long aspired for financial services aligned with their values.”

Senior Assistant Governor Arifa A. Ala, who chairs the Islamic Finance Coordination Forum, said the gathering also underscored a broader policy objective beyond regulation.

“The Bangko Sentral plays a key role in advancing Islamic finance, but tonight’s gathering reflects something broader—it affirms our belief that a truly inclusive financial system must also respond to the traditions, values, and needs of the communities we serve,” Ala said.

The BSP began hosting the Iftar in 2025, when it held its first such gathering on 27 March at its Manila head office as part of efforts to strengthen cooperation on Islamic banking and finance.

The latest event comes as the Philippines continues to build out its Islamic finance framework under Republic Act No. 11439, or the Islamic Banking Act, which authorizes the regulation and organization of Islamic banks and Islamic banking units.

Since the law’s passage, the BSP and other regulators have rolled out a series of rules for the sector, including the 2019 guidelines on the establishment of Islamic banks and Islamic banking units, the Shari’ah Governance Framework, and later rules on liquidity risk, transaction reporting and capitalization.

The regulatory architecture has continued to expand in recent years, with BSP-listed related issuances also covering takaful, Islamic deposit insurance and sukuk, including Securities and Exchange Commission guidelines on the issuance and disclosure of sukuk dated 25 February 2026.

On its Islamic banking portal, the BSP defines sukuk as Islamic bonds representing undivided shares in ownership of assets, usufructs or services, while takaful refers to the Islamic alternative to conventional insurance based on mutual guarantee.

The BSP said its continuing engagement reflects a broader commitment to an inclusive financial system that recognizes the country’s cultural diversity and expands access to faith-aligned financial products.