BSP remains flexible to lure Islamic banks
Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno stated that they would maintain flexibility to attract industry players to venture into Islamic banking in the country.
Diokno said this flexibility will allow banks to thrive in the new environment, since the Act Providing for the Regulation and Organization of Islamic Banks was signed into law in 2019.
“The reforms convey to the market that the country fosters an open and competitive financial system that is also Shariah compliant and principles-based. This is consistent with our efforts to foster financial inclusion and a high quality of life for Filipinos,” Diokno said.
Further, the Bureau of Internal Revenue (BIR) issued a new regulation that states that Islamic banking transactions will not be taxed more heavily or more lightly than conventional transactions.
