To expand the market for Islamic banking in the country, the Bangko Sentral ng Pilipinas (BSP) said there are now 138 certified Islamic finance experts in the Philippines as of end-July this year from only 50 a year ago.

The 138 personnel have been certified by the Islamic Banking and Finance Institute Malaysia’s (IBFIM) Associate Qualification in Islamic Finance (AQIF) program.

This was a BSP project with the Asian Development Bank (ADB) and the IBFIM, under the AQIF. Last July 19, an AQIF and Intermediate Qualifications in Islamic Finance or IQIF-Banking Conferment Ceremony was held to acknowledge the certified Islamic finance professionals who completed IBFIM’s certification courses.

“The IBFIM’s AQIF and IQIF-Banking are globally recognized certification programs designed to provide foundational knowledge in Shariah principles, including its application in Islamic finance (AQIF) as well as equip participants with advance knowledge and practical skills in specific functional areas of Islamic banking operations (IQIF-Banking),” the BSP explained.

BFIM, a learning institution specializing in technical certifications for the Islamic finance industry, has developed a qualifications framework that are accredited by the Finance Accreditation Agency, an organization in Malaysia that certifies international financial training courses.

The 138 AQIF-certified professionals came from the BSP, ADB and Al Amanah Islamic Investment Bank of the Philippines, the first Islamic bank here. 

The other AQIF-Banking graduates were from the Auditing and Assurance Standards Council, Bureau of Internal Revenue (BIR), Bureau of the Treasury (BTr), Department of Finance, Department of Justice, Department of Trade and Industrym (DTI), Financial and Sustainability Reporting Standards Council, Insurance Commission (IC), National Commission on Muslim Filipinos, Philippine Deposit Insurance Corporation (PDIC), Securities and Exchange Commission (SEC) and the Bangsamoro Autonomous Region in Muslim Mindanao.

During the ceremony, BSP Deputy Governor Chuchi G. Fonacier said the 138 Islamic finance experts will contribute to the Islamic banking sector’s growth and development.

“The reinforced knowledge and competencies acquired on Islamic banking and finance through the AQIF and IQIF-Banking programs are highly relevant and powerful tools for advancing the Philippine Islamic finance industry through appropriately structured regulatory and operational frameworks for key sectors of the domestic Islamic finance ecosystem,” she said.

As for BSP Assistant Governor and Islamic Finance Coordination Forum (IFCF) Chairperson Arifa A. Ala, she underscored the continued collaboration and cooperation to promote the development of Islamic banking and finance in the country.

The IFCF is composed of 12 member-agencies to facilitate discussions, collaboration, and cooperation related to the promotion and development of Islamic banking and finance. It includes the BSP, ADB, DTI, SEC, IC, PDIC, and the Bangsamoro government or BARMM, among others.

Ala noted the “consistent and strong commitment” of the IFCF members to implement “the whole-of-government approach in developing a stable, inclusive, and sustainable Islamic finance ecosystem that can thrive alongside the conventional system.”

Meanwhile, Monetary Board members Romeo L. Bernardo and Rosalia V. De Leon also encouraged the further enhancement of Islamic banking and finance professionals in the country.

“Consistent with our broader financial inclusion agenda, the BSP will continue to promote Islamic banking and finance and advance our efforts in capacity building. This is aligned with our goal of fostering a resilient, inclusive, and sustainable financial ecosystem that can support the diverse needs of our fellowmen,” said Bernardo, who is a former finance undersecretary, banker and market analyst.

Former national treasurer De Leon, for her part, was quoted as saying that the success of the Philippines’ maiden sovereign sukuk issuance complements the goal of deepening the capital markets. The Philippines issued its first 5.5-year $1 billion sukuk bonds in November last year.

“The landmark sukuk issuance of the Republic is envisioned to open more investment opportunities for those seeking Shari’ah-compliant or alternative investments, encouraging broader participation in the domestic and global Islamic financial markets,” noted De Leon.

In February 2023, the Kuala Lumpur-based IBFIM recognized the BSP with the “Outstanding Industry Collaboration Award”, which was received by Ala on behalf of the central bank.

This award, which started in 2018, is given to local and international institutions for their outstanding collaboration with IBFIM in developing professionals in the field of Islamic finance.

At the moment, the Philippines have two Islamic banks, the state-owned Al Amanah Bank which is a subsidiary of the Development Bank of the Philippines and created by a presidential decree in 1973; and CARD Bank, a rural bank based in Cotabato City, and operating as of Jan. 22, 2024.

Republic Act No. 11439 or the Islamic Banking Law was enacted in 2019.  But it was only in 2021 that the BSP initiated the creation of the Shari’ah Supervisory Board (SSB) in the BARMM.

The SSB’s primary function is to issue Shari’ah opinions on Islamic banking transactions and products in the BARMM.