NewsPromising Partnership between PCID and BSP in the Realm of Islamic Banking and Finance
On January 19, the Philippine Center for Islam and Democracy (PCID) received an invitation from the Bangko Sentral ng Pilipinas (BSP) to explore a potential collaboration aimed at advancing Islamic Banking and Finance in the Philippines. The event took place at the BSP’s main office in Manila.
Amina Rasul, President of PCID, officially commenced the meeting by reflecting on the past collaborative endeavors between BSP and PCID in 2014. During that period, the Foundation of Economic Freedom and PCID had extended technical support to the Moro Islamic Liberation Front (MILF) through the Bangsamoro Development Agency. Notably, one of the forms of technical assistance involved a two-day workshop on Islamic Banking and Finance, where Nica Dominarez was in attendance.
Nica Dominarez played a pivotal role in spearheading the involvement in the crafting of the Central Bank Code. AG Ala recollected that dating back to 1996, there were preliminary drafts of the Islamic Bank Bill from BSP, underscoring the enduring interest in this domain. She pointed out that when she and Congressman Sangcopan approached Senator Escudero about sponsoring the bill, he initially hesitated due to concerns about AL-AMANA bank potentially being left behind. In response, she emphasized that the bill’s advantages would encompass AL-AMANA as well. Additionally, AG Ala highlighted the significance of advocating for the Islamic Banking and Finance law, emphasizing its role in consolidating various pertinent areas, including Tax Neutrality. She pointed out that Malaysia, even after establishing Islamic banks, took a decade to attain Tax Neutrality.
Amina Rasul addressed the present status of PCID, noting its integration into the UP System as a think tank. She emphasized the ongoing partnerships with UP National College of Public Administration and Governance (NCPAG and collaborations with the College of Law and Economics to create a resource system. Ma’am Amina reiterated that the meeting’s objective was to define the nature of the partnership between PCID and BSP and formulate a strategic plan accordingly. She also highlighted the importance of institutional memory between BSP and PCID, prompting AG Ala to recommend establishing a Memorandum of Agreement (MOA). Furthermore, the roles of PCID in the realm of Islamic Banking and Finance were deliberated, with an emphasis on capacity building in crucial sectors, as well as promotion and education. The BSP’s primary areas of concentration in Islamic and finance matters were identified as the Major Players, Hajj Funds, and Zakat.