Finance Secretary Ralph Recto supports the ownership transfer of Al-Amanah Islamic Investment Bank of the Philippines (AAIIBP) from the Development Bank of the Philippines (DBP) to the Bangsamoro Government.

“This will support the Bangsamoro government’s efforts to provide vital social and infrastructure projects to fast-track the region’s progress. The road to peace, inclusive growth, and prosperity in the region becomes even brighter,” Recto said in a statement released Monday.

The Bangsamoro Government, which proposed the the ownership transfer of AAIIBP, leads the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) which consists of Basilan, Lanao del Sur, Maguindanao, Sulu and Tawi-Tawi provinces.

4-M residents benefit

BARMM has more than 4 million residents or 4 percent annual population growth, according to the Philippine Statistics Authority.

Recto said AAIIBP’s transfer to the Bangsamoro Government will bring it savings of P6 billion in minimum capitalization or the amount needed to put up a universal bank to engage in investment activities.

With the Bangsamoro Government’s comprehensive knowledge on Islamic culture and the BARMM’s Islamic Finance Roadmap, Recto said the AAIIBP transfer is “ideal and strategic.”

He added that the move complies with Section 3 of Republic Act 6848 or the AAIIBP Charter, which mandates the Islamic bank to help drive socio-economic progress in the BARMM.

AAIIBP is the country’s first Islamic bank authorized to operate as a subsidiary of the state-owned Development Bank of the Philippines in 2008, and serves as the official depository bank of government-owned- or controlled corporations, especially those operating in the BARMM.

AAIIBP has an authorized capital stock of P1 billion, 10 million common shares, and nine branches.