Philippines Businessmen Demand Islamic Banks in South
DAVAO CITY, June 25 (IslamOnline)- Mindanao businessmen are asking the Manila central government to allow for the entry of more Islamic banks in Mindanao in order to make available more credit facilities to Moro Muslim communities, a Filipino newspaper said Monday.
The Philippine Daily Inquirer said on its web site today that Mindanao Business Council (MBC) Chair, Joji Ilagan-Bian, said the Autonomous Region in Muslim Mindanao and Western Mindanao have "the lowest per capita income and the highest poverty incidence."
"They also have the lowest access to essential services such as potable water, electricity, health care and education," she said.
Bian said providing accessibility to financial facilities that respect Islamic beliefs and tradition was one option the government must consider in regards to the economic concerns in the region.
At present, only Philippine Al-Amanah Islamic Bank exclusively caters to Muslim entrepreneurs and individuals, Bian said.
With the amendment of Republic Act No. 6848, the law that created Al-Amanah Islamic Bank, the provision for a 60-percent government ownership has been changed allowing private groups to own the majority of the bank. This paved the way for the bank's privatization.
A number of groups have expressed interest in buying into the bank, including the Islamic Development Bank of Jeddah and even the Sultanate of Brunei.
Abraham Ututalum, manager of Al-Amanah Islamic Bank-Davao City branch, said the bank, though having only a paid-up capital of P1 billion has no liabilities and international debts making it attractive to foreign investors.
The proposal for more Islamic banks came during a series of consultation workshops held by the Mindanao Business Council in the cities of Davao, Cagayan, Ozamiz, Cotabato, General Santos and Zamboanga.
Bian said the proposal would be presented to President Macapagal-Arroyo during the 10th Mindanao Business Conference in Cotabato City in August.
