MARAWI 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 in Cotabato City 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.
The Al-Amanah Islamic Investment Bank of the Philippines (AAIIBP) and CARD Bank Inc., currently 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 under 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 that are not Islamic banks 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 Shari’ah law,” Arnel Adrian Salva, deputy director of BSP’s Economic and Financial Learning Office, said.
This move aims to create more inclusive financial options in BARMM, home to most of the country’s Muslims.
According to 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 serve as key members of the Shari’ah Supervisory Board. These efforts aim to provide BARMM residents with better access to financial services that respect cultural practices and religious beliefs, promoting financial inclusion. (BIO/PIA-10 Lanao del Sur)
