September 10, 2024 | 12:00am
MANILA, Philippines — The Bangsamoro Autonomous Region in Muslim Mindanao is expected to acquire the shares of the Development Bank of the Philippines (DBP) in the country’s first Islamic bank to accelerate development in BARMM.
This developed after the Intergovernmental Fiscal Policy Board (IFPB) approved a proposal of the BARMM government to acquire the DBP shares in the Al-Amanah Islamic Investment Bank of the Philippines (AAIIBP).
The IFPB is co-chaired by Finance Secretary Ralph Recto and BARMM Minister of Finance, Budget and Management Ubaida Pacasem.
The acquisition aims to promote financial inclusion and accelerate socioeconomic development in the region.
The AAIIBP has an authorized capital stock of P1 billion, consisting of 10 million common shares and a network of nine branches.
In 2008, the AIIBP became a subsidiary of DBP, owning 99.9 percent of its capital stock.
By owning the shares of the AAIIBP, the Bangsamoro government is expected to save on the total minimum capitalization required of around P6 billion in setting up a universal bank.
The IFPB said the BARMM proposal is aligned with an AAIIBP charter that mandates the Islamic bank to support socioeconomic development in the region.
This will be achieved by performing banking, financing and investment operations as well as engaging in agricultural, commercial and industrial ventures based on Islamic banking principles.
Recto said the proposal would build a strong and vibrant Islamic banking system that caters to the specific needs of the Bangsamoro people.
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