Expanding BARMM banking services mulled

ZAMBOANGA 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.

Arnel Adrian Salva, deputy director of BSP’s Economic and Financial Learning Office, said the concept would open new financial opportunities for the region while promoting broader access to Islamic banking services in the country.

Salva explained institutions such as the Al-Amanah Islamic Investment Bank of the Philippines (AAIIBP) and the CARD Bank Inc. offer Islamic banking services in the region.

Additionally, he said, “However, the BSP is exploring the possibility for other banks — those not traditionally categorized as Islamic — to provide services under Shari’ah law.”

Salva said “There is a law that enhances Islamic banking in the Philippines. We also have a separate group that addresses that. So, even those which 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 to Muslims or compliant with the Shariah law,” Salva explained.

This move is intended to create more inclusive financial options in BARMM, which is home to the majority of the country’s Muslim population, he emphasized.

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.

The information session aims to familiarize people with Shari’ah-compliant banking principles and address misconceptions that may exist.

The Bangsamoro Government and the BSP are also playing a key role as members of the Shari’ah Supervisory Board.

With these developments, BARMM residents could have greater access to financial services that align with cultural practices and religious beliefs, fostering financial inclusion.