REPUBLIC ACT NO. 11439
AN ACT PROVIDING FOR THE REGULATION AND ORGANIZATION OF ISLAMIC BANKS
SECTION 1. Declaration of Policy. — The State recognizes the vital role of Islamic banking and finance in creating opportunities for greater financial inclusion especially for the underserved Muslim population, in expanding the funding base for small and medium-sized enterprises as well as large government infrastructure through financial arrangements with risk sharing as their core element, and in contributing to financial stability through the use of financial contracts and services that are founded on risk sharing rather than speculation in compliance with Shari'ah principles.
SECTION 2. Definition of Terms. —
(a) As used in this Act:
(1) Shari'ah refers to the practical divine law deduced from its legitimate sources: the Qur'an, Sunnah, consensus of Muslim scholars, analogical deduction and other approved sources of Islamic law;
(2) Current account refers to the total deposits at an Islamic bank which are repayable on demand and compliant with Shari'ah principles;
(3) Investment account refers to the total funds placed by an investor...
