Bangko Sentral ng Pilipinas (BSP) executives engage in a media information session discussing the institution’s core functions, digital payment initiatives, and financial consumer protection on Oct. 22, 2024 in Cotabato City. (Benyamen Cabuntalan/BIO)
COTABATO CITY—The Bangko Sentral ng Pilipinas (BSP) is eyeing to expand Islamic banking services in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM), aiming to allow non-Islamic banks to offer Shari’ah-compliant financial services.
During the media information session held here on Tuesday, Oct. 22, the BSP executives said this development would open new financial opportunities for the region while promoting broader access to Islamic banking services in the country.
Currently, institutions such as the Al-Amanah Islamic Investment Bank of the Philippines (AAIIBP) and the CARD Bank Inc. offer Islamic banking services in the region. However, the BSP is exploring the possibility for other banks—those not traditionally categorized as Islamic—to provide services in accordance with Shari’ah law.
“Meron pong batas na nag-e-enhance ng Islamic banking sa Pilipinas. Meron din po kaming separate group that addresses that. So, even those which are not Islamic bank can offer [Islamic bank] windows. A bank does not have to be an Islamic bank to be able to offer services sa mga Muslims or compliant sa Shairiah law,” Arnel Adrian Salva, deputy director of BSP’s Economic and Financial Learning Office, said.
This move is intended to create more inclusive financial options in BARMM, which is home to the majority of the country’s Muslim population.
According to the Republic Act No. 11439, an Act providing for the regulation and organization of Islamic Banks, the Islamic banking business refers to a banking business with objectives and operations that do not involve interest (ribā) as prohibited by the Shari’ah and which conducts its business transactions in accordance with the principles of the Shari’ah.
Meanwhile, Zarina Aglisao, BSP Cotabato Branch director, noted that BSP is coordinating with the Bangsamoro Government and local academic institutions to launch information sessions to address public concerns and close the information gap surrounding Islamic banking, which aims to familiarize people with Shari’ah-compliant banking principles and addressing misconceptions that may exist.
The Bangsamoro Government and the BSP are also playing a key role as members of the Shari’ah Supervisory Board. With these developments, BARMM residents could have greater access to financial services that align with cultural practices and religious beliefs, fostering a financial inclusion.
Tuesday’s information session brought together various media practitioners in Cotabato City to discuss the BSP’s core functions, digital payment initiatives, and financial consumer protection, aiming for broader information dissemination. (Aisah Abas/BIO)
