Poe: harness full potential of Islamic banking

Sen. Grace Poe has filed a resolution seeking a review of government policies on Islamic banking to help speed up development in Mindanao.

"Consistent with the intentions of the signing of a framework agreement between the government and the MILF to speed up economic development in Mindanao, the presence of Islamic finance regulatory infrastructure would attract both Muslim and non-Muslim investors to enable local enterprises to widen their business perspectives," Poe said in filing Senate Resolution No. 469.

Poe said maximizing the full potential of Islamic banking in the country would attract more investments and employment opportunities, especially in the Mindanao region, where a peace framework agreement between the government and the MILF is set to be fully implemented.

An Islamic bank adheres to principles and values of the Holy Qur'an, which explicitly prohibits the charging of interests on loans.

Poe said the country can maximize the benefits of Islamic finance through clear regulatory policies that will encourage banks to offer Islamic financial services.

"The potentials of Islamic finance can be realized with comprehensive laws that would spur its development, with Philippines having a sizeable Muslim population," Poe said.

Al Amanah Islamic Investment Bank of the Philippines (Al-Amanah) is the first and only Islamic bank authorized to practice Islamic banking in the country. At present, conventional banking dominates its operations.

Republic Act 6848 established Al Amanah to serve the banking needs of the country's Muslim population.