Practice question
A conventional bank seeks authority to conduct Islamic banking through a designated unit and has the required segregation system. An adviser says its conventional status categorically makes this impossible under RA 11439. Which is correct?
- Section 3 permits Monetary Board authorization for the designated unit, subject to its requirements.
- Every conventional bank is categorically excluded
- A separate religious corporation must always take over
- No BSP authority is needed
- Segregation is legally irrelevant
Legal references
- RA 11439 (2019), Sections 2-4, expanded Islamic banking framework: https://lawphil.net/statutes/repacts/ra2019/ra_11439_2019.html
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