​ ​ ​​ FB Share

A. BSP Regulations

Prudential regulations are issued by the BSP to implement key provisions of RA 11439 or An Act Providing for the Regulation and Organization of Islamic Banks and other laws on Islamic banking, and provide an enabling regulatory environment and level playing field where Islamic banks can operate alongside conventional banking.

The prudential regulatory frameworks and guidelines issued to date by the BSP include:


Circ. No. 1069 - Guidelines on the Establishment of Islamic Banks (IBs) and Islamic Banking Units (IBUs)

Circ. No. 1070 - Shari’ah Governance Framework for IB and IBU

Memorandum No. M-2020-052 – Frequently Asked Questions on Islamic Banking

Circ. No. 1116 - Guidelines on the Management of Liquidity Risk by IBs and IBUs

Circ. No. 1139 - Guidelines for Reporting Islamic Banking and Finance Transactions/Arrangements

Circ. No. 1173 - Modified Minimum Capitalization of Conventional Banks with Islamic Banking Unit

B. Other related regulatory issuances on Islamic finance:

Bureau of Internal Revenue

RR No. 17-2020 - Implements the Tax Neutrality provision of Republic Act No. 11439 (An Act Providing for the Regulation and Organization of Islamic Banks)

RMC No. 35-2022 – Tax Treatment of Murabahah (Profit Disclosed Sale) and Tawarruq (Commodity Murabahah) as Islamic Banking Arrangements
Insurance Commission

Circular Letter 2022-04 – Baseline Regulatory Framework for Takaful Undertakings