Mindanaoans have pushed for the expansion of Islamic banking and the development of Shariah-compliant products and services in the Philippines.
Party-list Rep. Sitti Djalia Turabin-Hataman of Anak Mindanao (Amin) has filed House Bill (HB) 5989, or “An Act Amending Republic Act 6848, more known as ‘Charter of Al-Amanah Islamic Investment Bank of the Philippines’ and Providing for the Regulation and Organization of an Expanded Islamic Banking System in the Philippines.”
Hannah Straver, socioeconomic affairs consultant of Amin, said the filing in Congress has been done and the group expects it will be passed into law by next year.
She said the bank needs to ramp up capital to make lending more viable. She added that they intend to keep the bank under the supervision of the Bangko Sentral ng Pilipinas (BSP).
Straver said the BSP is supportive and had been involved in the technical working group that formed the charter amendments.
“Other banks have expressed their intention of offering Islamic banking products. We need to establish a legal and regulatory framework, hence the need to amend the bank’s charter and make it better. Maybank Islamic is interested in sukuk bonds,” she told the BusinessMirror.
“We encourage them to offer products that are Shariah compliant to cater to the needs not only of the Muslims but those who want Islamic banking,” she added.
Maybank Kim Eng CEO John Chong said they are advising clients to tap sukuk market and to find an investing place. But the bank has no immediate plans of issuing sukuk bonds in the Philippines.
The Al-Amanah Islamic Investment Bank, which was established in 1974, is one of the oldest Islamic banks in the world, making the Philippines a pioneer in Islamic banking.
The bank has branches in Zamboanga, Davao and Cotabato.