BARMM to buy DBP stake in Amanah Bank
FINANCE Secretary Ralph G. Recto expressed support for the Bangsamoro government’s plan to acquire the stake held by the Development Bank of the Philippines (DBP) in the Al-Amanah Islamic Investment Bank of the Philippines (AAIIBP).
He said in a statement that Bangsamoro control of the stake will help promote financial inclusion and fund key social and infrastructure projects in the region.
“We are taking bold steps to build a strong and vibrant Islamic banking system that caters to the specific needs of the people of BARMM (Bangsamoro Autonomous Region in Muslim Mindanao).”
The proposed transfer of shares was approved at the Intergovernmental Fiscal Policy Board’s (IFPB) 7th meeting on Sept. 3. Mr. Recto and Bangsamoro government Minister of Finance, Budget, and Management Ubaida C. Pacasem serve as co-chairpersons of the board.
The IFPB will determine the degree of the Bangsamoro government’s participation in the AAIIBP, guided by Republic Act (RA) No. 11054 or the Bangsamoro Organic Law.
The planned acquisition aligns with the Section 3 of RA 6848 or the AAIIBP Charter, which requires the bank to support the region’s socio-economic development.
“This will be achieved by performing banking, financing, and investment operations as well as by engaging in agricultural, commercial, and industrial ventures based on Islamic banking principles,” DoF said.
AAIIBP’s powers include serving as an official depository bank of government-owned- or -controlled corporations (GOCCs) especially those based in BARMM, it added.
As the Philippines’ first Islamic bank, the AAIIBP is recognized as a Universal Bank with an authorized capital stock of P1 billion, consisting of 10 million common shares and a network of nine branches.
In 2008, the AAIIBP became a subsidiary of the DBP, which owns 99.9% of its capital stock.
“By owning the shares of the AAIIBP, the BARMM effectively saves on the total minimum capitalization required of around P6 billion in setting up a Universal Bank,” the DoF said.
To complete the transfer, the Bangsamoro government and the DBP are currently seeking approval from the Bangsamoro Transition Authority, the central bank, and the Governance Commission for GOCCs.
Last week, the IFPB approved the guidelines for official development assistance to help the BARMM conclude more foreign-aid deals on its own. — Beatriz Marie D. Cruz
