Photo Credit: PIACOTABATO CITY -- The Bangko Sentral ng Pilipinas (BSP)-licensed Islamic Branch of Center for Agriculture and Rural Development (CARD) Bank, Inc., has officially opened its doors to Bangsamoro residents. This marks an important milestone in the country’s commitment to developing an Islamic finance ecosystem, offering a range of financial products and services that align with Islamic principles.
Lawyer Normina Datadacula, manager of the Islamic Banking Supervisory Group of BSP, highlighted the significance of this milestone. Since the enactment of Republic Act 11439, or the Islamic Banking Law, the BSP has implemented regulatory reforms to foster the growth of Islamic banking in the Philippines. CARD Bank has promptly responded to these changes, leveraging the current demands for Islamic banking.
Rest assured, as the journey of Islamic banking begins, BSP will be a steadfast partner, continuously issuing enabling regulations to expand Islamic banking and finance in the country.
The CARD Bank, the first Islamic Bank in Cotabato City, officially began operations on January 22, 2024. The bank primarily aims to serve the unbanked and underbanked population. This move is expected to strengthen the region’s economy providing ethical Shariah-compliant financial services.
CARD Bank is a microfinance-oriented rural bank established on September 1, 1997, in San Pablo City, Laguna. With 54 branches and 329 micro-banking offices (MBO) located nationwide, it serves over 900,000 clients across the country.
Dr. Jaime Aristotle Alip, founder and chair emeritus of CARD Mutually Reinforcing Institutions (MRI), highlighted the uniqueness of Islamic banking. Unlike conventional banking, Islamic banking does not impose interest, in accordance with the Shari’ah law that promotes risk-sharing.
The establishment of the Islamic branch aims to empower local communities. It will provide them with accessible, ethical, and Shari’ah-compliant financial services, thereby serving “the unbanked and underbanked population” and strengthening the region’s economy.
Mohammad Pasigan, the chairperson of the Bangsamoro Board of Investments (BBOI), commended CARD Bank for taking the initiative to promote Islamic banking services in BARMM. He assured the bank of the Bangsamoro government's support and expressed confidence in its positive impact on the regional economy.
CARD Bank's wide range of financial products and services based on Islamic finance principles includes Wadiah Deposits accounts, Term Investment Deposits under Mudharabah, Micro-Agri Financing and Micro-Enterprise Financing under Murabahah or Musharakah contracts, all in compliance with Islamic finance law.
In addition to its physical services, the bank also offers digital banking services. Clients can manage accounts and conduct transactions conveniently using the “konek2CARD” mobile banking application on their Android mobile phones.
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