BSP Circular No. 1069, Series of 2019, Guidelines on the Establishment of Islamic Banks and Islamic Banking Units

The Guidelines on the Establishment of Islamic Banks and Islamic Banking Units (Guidelines) provide for the basic guidelines for establishing Islamic banks and Islamic banking units. It expressly states that the Bangko Sentral recognizes the importance of Islamic banking as an alternative business model to promote its financial inclusion agenda. Hence, it aims to promote an Islamic banking system that can operate alongside the conventional banking system, and an open approach where conventional banks operate Islamic banking units. 

The Guidelines, which amend the Manual of Regulation for Banks, provide the minimum prudential requirements as to organizational structure, stockholding limits, capitalization, and governance. It also provides the powers and services that Islamic banks may perform.