Maybank eyes more Islamic banking

Maybank Philippines Inc.(MPI), a member of the Malaysian Maybank Group, a leading financial services group ranked No. 4 in the Association of Southeast Asian Nations (ASEAN) by assets, is looking to set up more Islamic banking branches as it reviews where to best position them alongside some of its other branches in the Philippines.

- MARIANNE GO

This was revealed last week by Maybank's head of virtual banking, Paolo Salceda, in an interview on the sidelines of the relaunch of the bank's upgraded Maybank2U PH (M2U) mobile app, which Salceda said would also include, in the future, access for its Islamic banking clients to open accounts.

Maybank started offering Islamic banking in its Zamboanga branch in August but the bank is now studying the possibility of setting up more Islamic banking windows alongside its existing 60 branches in the country.

According to Maybank's definition, Islamic banking refers to a banking facility that complies with Islamic law, also known as Shariah law. The Shariah principle is a framework of Islamic law to guide all aspects of life, including rituals/worship (ibadat), family matters (munakahat), financial transactions (muamalat) and the punishment of crimes (jinayat).

The underlying principles that govern Islamic banking are mutual risk and profit-sharing between parties, the assurance of fairness for all and transactions based on an underlying business activity or asset that is compliant with Islamic principles.

These principles are supported by Islamic banking's core values, whereby activities that cultivate entrepreneurship, trade and commerce, and bring societal development or benefit, are encouraged. Activities that involve interest (riba), gambling (maisir) and speculative trading (gharar) are prohibited.

Maybank Philippines is offering Islamic banking to provide Shariah-compliant products to Filipinos, offering alternative banking opportunities in the local market where such services are not yet available.