The Central Bank of the Philippines has issued amended rules for Islamic banking units (IBUs) within conventional banks, easing standalone requirements and streamlining reporting in support of the development of the Philippine Islamic banking industry. Under the changes, IBUs are not subject to a separate capital requirement, with conventional banks instead applying the capital requirements for their bank category. The processing fee for an IBU licence will likewise follow the fee schedule for the bank’s category. The framework also formalises a three-year observation period from the launch of Islamic banking operations for submitting prudential reports on Islamic banking activities, and removes the requirement for a separate IBU liquidity report by allowing liquidity reporting to be integrated into the bank-wide liquidity report. The central bank linked the revisions to its promotion of Islamic banking and finance under the Islamic Banking Law.
Central Bank of the Philippines 2025-10-22
Central Bank of the Philippines relaxes capital, licensing and reporting rules for Islamic banking units
The Central Bank of the Philippines has amended rules for Islamic banking units (IBUs) within conventional banks, easing standalone requirements and streamlining reporting. Key changes include removing separate capital and liquidity requirements for IBUs, aligning them with the bank's category, and a three-year observation period for prudential reporting. These revisions support the development of the Philippine Islamic banking industry under the Islamic Banking Law.