REGULATORY CHALLENGES OF ISLAMIC BANKING IN THE PHILIPPINES: THE CASE OF AL-AMANAH BANK
DOI:
https://doi.org/10.69745/ijsspp.v4i2.181Keywords:
Al-Amanah Bank, Islamic banking, Islamic finance regulation, Philippines, Sharia governanceAbstract
Islamic finance has emerged as one of the fastest-growing segments of the global financial industry, driven by ethical investment principles, risk-sharing mechanisms, and regulatory developments in many countries. Despite this global growth, the development of Islamic banking in the Philippines has been relatively slow compared with other Southeast Asian countries. This study aims to examine the regulatory and institutional challenges affecting the development of Islamic finance in the Philippines, focusing on the experience of the Al-Amanah Islamic Investment Bank of the Philippines. The study employs a qualitative descriptive approach using document analysis of legal frameworks, institutional reports, and relevant academic literature related to Islamic banking regulation in the Philippines. The findings indicate that the slow development of Islamic finance in the Philippines is influenced by several factors, including limited regulatory frameworks in the past, lack of institutional capacity and expertise in Islamic finance, taxation issues, and low public awareness regarding Islamic banking services. Although the enactment of Republic Act No. 11439 (Islamic Banking Act of 2019) represents a significant milestone in providing a legal framework for Islamic banking operations, challenges remain in terms of regulatory implementation, institutional readiness, and market development. The study concludes that strengthening regulatory capacity, improving public awareness, and developing institutional expertise are essential to support the sustainable growth of Islamic banking in the Philippines. A limitation of this study is that it relies primarily on secondary data and policy documents..
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