COTABATO CITY (PIA) — The government of the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM), through the Bangsamoro Board of Investments (BBOI), is set to introduce Islamic banking in the Bangsamoro region in 2024.
Islamic banking refers to a banking business whose objectives and operations do not involve interest (riba), as prohibited under Islamic laws, and conducts its business in accordance with the principles of the Shari’ah.
Mohamad Pasigan, chairperson of BBOI, said the initiative is in partnership with the Center for Agriculture and Rural Development (Card) Bank, Inc., and Maybank Philippines, Inc., aimed at reinforcing the region’s economic resilience and financial inclusivity by providing ethical and Shari’ah-compliant financial services to the Bangsamoro people.
Bangsamoro Board of Investments (BBOI) Chairperson Mohammad Pasigan (4th from right) shook hands with Executive Vice President of Card Bank Jeffrey Rondina (5th from left). Also seen in the photo were other officials from Maybank and Card Bank, including BBOI Board of Governor Datu Habib Ambolodto (3rd from right), during their meeting on December 7, 2023. (Photo courtesy of BBOI)
“This collaboration signifies a significant step forward in realizing the region’s economic potential and ensuring that Islamic finance becomes an integral part of the financial landscape,” Pasigan said, commending Card Bank Inc. and Maybank Philippines Inc. for their innovative approaches to ethical banking practices and financial inclusion.
He said that Islamic banking caters to the specific needs of the Bangsamoro people, providing them with a wide array of banking options that uphold the values of “fairness, transparency, and social responsibility.”
“The introduction of Islamic banking windows by Card Bank, Inc., and Maybank is poised to contribute to the sustainable growth of the Bangsamoro region, fostering economic empowerment and creating opportunities for individuals and businesses to thrive,
Pasigan also underscored the importance of promoting a strong financial ecosystem that aligns with Islamic principles.
Card Bank Inc. is a microfinance-oriented rural bank established on September 1, 1997, in San Pablo City, Laguna. To date, it has 54 branches with 329 Micro Banking Offices (MBOs) nationwide.
Maybank Philippines Inc., on the other hand, started its operation in November 1997 as a full-service commercial bank licensed by the Bangko Sentral ng Pilipinas (BSP).
It can be recalled that in May of last year, the Bangsamoro government, BSP, Department of Finance (DOF), and the National Commission on Muslim Filipinos (NCMF) signed a Memorandum of Agreement (MOA) for the establishment of the Shari’ah Supervisory Board (SSB) in the region.
Among the SSB’s functions is to issue Shari’ah opinions on Islamic banking transactions and Shari’ah products in the BARMM, including financial institutions and other stakeholders on special occasions, when requested by the BSP. (LTB – PIA Cotabato City/with reports from BBOI)
