A growing Islamic banking sector

The Islamic banking landscape in the Philippines is quietly but steadily transforming.

- JAIME ARISTOTLE B. ALIP, PHD

What was once a niche financial segment confined to a single institution is now entering a period of meaningful expansion — driven by regulatory reforms, growing investor confidence, and deepening demand from Muslim communities, particularly in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM). The Al-Amanah Islamic Investment Bank of the Philippines (Amanah), a subsidiary of the Development Bank of the Philippines, is the first and only Islamic Bank in the country. Now, there are also conventional banks offering Islamic Banking branches or windows, like Maybank Philippines and CARD Bank, a microfinance-oriented rural bank.

A few weeks ago, I witnessed this momentum firsthand when I joined CARD Bank for the launch of its second Islamic/Shari'ah Banking Branch in Marawi City. The event brought together an inspiring mix of leaders championing inclusive finance in the Bangsamoro: Bangko Sentral ng Pilipinas (BSP) Senior Assistant Governor Arifa Ala, Bangsamoro Board of Investments (BBOI) Chairperson Mohamad Omar Pasigan, BBOI Board Governor Datu Habib Ambolodto, CARD Bank President Marivic Austria, CARD MRI Managing Director Aristeo Dequito, and representatives from the Marawi City local government unit (LGU). Delegates from the BSP, microfinance institutions (MFIs), and other LGUs also joined the celebration.

Also present were CARD Bank's Shari'ah/Islamic Advisory Group -- Dean Hussein Lidasan, Dr. Jawad Salic, Indonesia's Ibu Rini Supri Hartanti, and Dr. Anwar Radiamoda,—who ensure the bank's compliance with Shari'ah principles and alignment with Muslim values, culture, and ethical standards.

Islamic banking gains traction in BARMM and beyond