LAWMAKERS promised to pass a regulatory framework for Islamic banking that encourages a level playing field for a wider success in financial transactions.
AMIN Rep. Sitti Djalia Turabin-Hataman, author of House Bill (HB) 5989 which seeks to amend the Al Amanah Bank Charter, said they want to have Islamic banks that operate alongside with conventional bank.
The measure aims to regulate and organize an expanded Islamic banking system in the country.
“The bill will allow local and international investors to open Islamic banks and the existing conventional banks to open Islamic banking units,” Turabin-Hataman said.
“Islamic banking and finance is a growing industry worldwide, gaining markets not just exclusively for Muslims. Islamic banking is seen as an alternative to existing conventional banking,” the lawmaker added.
The passage of HB 5989 will have a significant impact on the country, as the Philippines is eyeing to be a major player in the Association of Southeast Asian Nations once the economic bloc is fully integrated.
The House Committee on Banks and Financial Intermediaries, chaired by Rep. Sonny Collantes, has created a technical working group to study HB 5989.
The Bangko Sentral ng Pilipinas (BSP) presented the committee with the status, trends, challenges and opportunities in Islamic banking in the Philippines and its global implications.
“We need to set up a more dynamic and responsive national regulatory framework on Islamic Banking,” the central bank said.
Collantes said the bill is quite timely, as it supports a sustainable inclusive growth.
BUTIL Rep. Agapitos Guanaco noted that Islamic banking is an alternative source of finance to address the requirements in the agriculture sector.