Maybank begins Islamic banking operations in PHL

Maybank Philippines, Inc. has officially launched its Islamic banking unit (IBU) after receiving a license from the Bangko Sentral ng Pilipinas (BSP) on July 4, 2024.

The bank’s Islamic banking services began on August 14, 2024, marking a significant step in the development of Islamic finance in the country.

Maybank is the first commercial bank in the Philippines to operate an IBU, following a soft launch on July 25. The BSP previously licensed CARD Bank, Inc., a microfinance-oriented rural bank, as the first institution to establish an IBU in June 2023.

Islamic banking units operate under Shari’ah principles, offering financial products and services that comply with Islamic laws. The BSP’s regulatory framework allows conventional banks to establish such units, facilitating greater financial inclusion for the country’s Muslim population.

During the inauguration of Maybank’s IBU, BSP Managing Director Judith E. Sungsai emphasized the importance of this milestone for the Philippine financial landscape.

“The integration of Islamic banking in Maybank’s operations is a significant milestone in the development of Islamic finance in the Philippines,” Sungsai said. She also reaffirmed the BSP’s commitment to fostering the growth of the Islamic banking sector.

“The BSP will continue to work closely with industry players to ensure the robust and sustainable growth of the Islamic banking sector,” Sungsai added.

As part of its broader agenda, the BSP supports the entry of new players into the Islamic banking sector to boost financial inclusion and contribute to the country’s economic development.

The BSP has also implemented regulatory reforms aimed at encouraging both local and foreign banks to participate in Islamic finance.

With this development, Maybank is expected to provide a wide range of financial services that adhere to Shari’ah principles, helping to expand access to banking for the Muslim population in the Philippines.