Philippine Regulators and Institutions Commit to Strengthening Islamic Finance Ecosystem
The Philippines has taken a significant step toward deepening the integration of Islamic finance into its national financial system, following the conclusion of the 5th International Islamic Finance Conference (IIFC). This two-day forum, which wrapped up on Tuesday, February 3, 2026, culminated in the signing of a pivotal joint declaration aimed at bolstering the Philippine Islamic finance ecosystem.
Joint Declaration Signals Shared Commitment to Ethical Finance
In a news release issued on Thursday, the National Commission on Muslim Filipinos (NCMF) announced that the conference ended with the formal signing of a Joint Declaration of Strengthening the Philippine Islamic Finance Ecosystem. This document represents a unified pledge from financial regulators and market institutions to advance financial inclusion and ethical investing, benefiting both Muslim and non-Muslim Filipinos alike.
NCMF Secretary Sabuddin Abdurahim emphasized the critical role of policymakers in this endeavor. "As regulators and policymakers, our shared responsibility is to ensure that Islamic finance remains faithful to its ethical foundations while meeting the highest standards of prudential regulation, risk management, and governance," Abdurahim stated. The conference, which gathered approximately 300 participants from government, financial institutions, academia, development partners, and the diplomatic corps, highlighted the growing institutional acceptance of Islamic finance in the country.
Regulatory Reforms and ASEAN Leadership Drive Progress
Finance Secretary Frederick Go pointed to the Philippines' current role as ASEAN chair as a unique opportunity to position Islamic finance as a catalyst for broader market participation. "This year, the Philippines, as ASEAN Chair, has a unique opportunity to deepen regional integration, attract investments, and expand access to finance," Go remarked. He noted that recent regulatory reforms have already facilitated the introduction of new products and providers, such as takaful licensing, which offers ethical insurance options accessible to all Filipinos.
Bangko Sentral ng Pilipinas Senior Assistant Governor Arifa Ala underscored the impact of inter-agency coordination in accelerating sector growth. "The results speak for themselves. From a single Islamic bank before 2019, we now have two more Islamic banks and multiple takaful operators," Ala said. She added that Islamic finance restores "choice, dignity, and belonging" within the financial system, aligning with broader goals of inclusive economic development.
Conference Sets Stage for Future ASEAN Cooperation
Organizers cited the conference as part of ongoing preparations for deeper ASEAN cooperation on inclusive growth. The event not only fostered dialogue among local and international stakeholders but also reinforced the Philippines' commitment to ethical financial practices. By aligning governance standards and market rules, Philippine authorities aim to create a more robust and accessible Islamic finance framework that supports sustainable investment and financial stability.
This initiative reflects a growing recognition of Islamic finance's potential to contribute to the nation's economic resilience and social equity, paving the way for future innovations in the financial sector.
