JEV, CPA attends round table discussion on prospects of Islamic Banking System in PH




JEV attending a Round Table Discussion on Islamic Banking – Islamic System of Banking, an opportunity and as alternative to conventional banking system held at the conference room of the Autonomous Region in Muslim Mindanao (ARMM) on January 11, 2016 as part of consultation on proposed bill authored by Anak Mindanao (Amin) Partylist Rep. Sitti Djalia Turabin-Hataman


By Jose E. Villacorta, CPA

It is common misconception that Islamic banking and finance is exclusive for Muslims only.  In country like our fellow ASEAN member Malaysia where Muslim population is 60% of total 30 million population:  majority of Islamic banking and finance clients are non-Muslims. In the light of ASEAN ECONOMIC INTEGRATION, there is a need for the Philippines to legislate laws to improve, expand and strengthen Islamic banking laws.  Al Amanah is the only authorized Islamic bank to operate in the Philippines.  In fact the Philippine Government is now taking initiative paving a way for a legislation to expand Islamic banking laws.  Once this required laws are in place, greater opportunities of investments will come in.  This includes investments form Gulf Countries that requires their moneys be deposited in Islamic bank as stand-alone Islamic bank or in window services. This will also pave a way for the implementation and observation of Islamic accounting system and regulations.  That is why even in Mutual Recognition Arrangement for Accountancy signed by the 10 member Asean Member countries, there is no mention about  Islamic accounting and Islamic banking as the Philippines for one has no wider laws to encourage Islamic accounting and banking

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