MANILA, Philippines — The enactment of a law establishing Islamic banks will allow the Philippines “to tap into and leverage on the growing pool of Islamic investors across the Middle East and in Southeast Asia,” Senator Sherwin Gatchalian said Tuesday.
READ: Duterte signs law regulating Islamic banking in PH
“With President Duterte’s signing of Republic Act No. 11439, or An Act Providing for the Regulation and Organization of Islamic Banks, Filipino Muslim entrepreneurs — especially those belonging to micro, small, and medium enterprises — will now have access to responsive banking and financial services that are compliant with the principles of Shari’ah law,” Gatchalian said in a statement.
The operations of Islamic banks, which will be established under the law, will not involve interest as prohibited under the Shari’ah law.
The said banks would conduct its business transactions in accordance to Shari’ah principles.
Shari’ah refers to “the practical divine law deduced from its legitimate sources: the Qur’an, Sunnah, consensus of Muslim scholars, analogical deduction, and other approved sources of Islamic law.”
The senator, who formerly chaired the Senate economic affairs committee, added that the new law would “compliment” the Bangsamoro Organic Law in the development of Muslim Mindanao.
This as the law would mandate the Bangsamoro government “to promote the development of an Islamic banking and finance system in the country” making Islamic finance “more viable and mainstream,” Gatchalian said.
“Sa pamamagitan ng batas na ito, kinikilala natin ang mahalagang papel na ginagampanan ng Islamic banking sa paglikha ng mga pagkakataon para sa pag-unlad ng lahat ng Pilipino, lalo na ang mga kapatid nating Muslim,” he added.
(With this law, we are recognizing the important role Islamic banking plays in the creation of opportunities for the development of all Filipinos, especially our Muslim brothers) /muf