Luxembourg Lauds ADB’s Impactful Islamic Finance for the Philippines Technical Assistance
On 10 April 2025, a Luxembourg government delegation met with representatives from the Asian Development Bank (ADB) and Bangko Sentral ng Pilipinas (BSP) in Manila, recognizing the Islamic Finance for the Philippines Technical Assistance (TA) as a model initiative. This USD 1.1 million TA, funded by ADB and the Government of Luxembourg in part through the Financial Sector Development Partnership Special Fund, was implemented under ADB's Office of the General Counsel's (OGC) Law and Policy Reform Program from 2017 to 2024, in close partnership with the BSP.
The Luxembourg delegation consisted of Arsène Jacoby, Director of Multilateral Affairs, Development and Compliance at Luxembourg's Ministry of Finance (MoF) and ADB Alternate Governor for Luxembourg, and MoF officer Sami Masri.
Assistant Governor Arifa Ala led the BSP team in welcoming the delegations. The ADB delegation comprised Junkyu Lee, Director of the Finance Sector Group, and Asghar Ali Syed and Maria Cecilia T. Sicangco, co-team leaders of the TA. Representing the BSP alongside Assistant Governor Ala were Noel Tianela, Deputy Director and Head of the Islamic Banking Supervision Group, Bank Managers Normina Datudacula and Anna Lisa B. Atienza, and Bank Officer Winnie Claire L. Jamoner-Carbonel.
Discussions focused on the TA's achievements in promoting the responsible growth of Islamic finance in the Philippines and expanding financial inclusion for unbanked and underbanked Muslim Filipinos. The BSP-ADB team highlighted key milestones:
- A legislative framework was established with the enactment of Republic Act No. 11439, the Islamic banking law, in 2019, followed by the development of implementing rules and regulations for various regulatory agencies, including the BSP, Bureau of Internal Revenue, Insurance Commission, and Philippine Deposit Insurance Corporation (PDIC).
- The Philippines successfully debuted in international Islamic financial markets in December 2023, issuing a USD 1 billion sovereign sukuk on Nasdaq Dubai, which was nearly five times oversubscribed.
- Over 1,700 banking and finance professionals underwent training in Islamic finance. Among them were 138 individuals who earned internationally recognized qualifications in 2024.
- CARD Bank and Maybank Philippines were granted Islamic banking window licenses, leading to the establishment of Islamic banking branches in Cotabato City and Zamboanga City, and the development of digital banking services tailored for Muslim Filipinos.
- Pru Life UK, Etiqa Philippines, and CARD MBA were licensed as takaful (Islamic insurance) operators.
- The PDIC approved the insurance coverage of Islamic deposits in the same manner as conventional deposits in December 2024, enhancing overall financial stability.
The Luxembourg delegation commended the TA's significant achievements and expressed interest in exploring further collaborative opportunities.
