Isabela City Pioneers Islamic Banking Caravan to Expand Financial Access
The City Government of Isabela de Basilan has taken a significant step toward financial inclusion by launching its first-ever Islamic Banking Caravan on Tuesday, January 27. This groundbreaking initiative, organized through the Public Employment Service Office (Peso), aims to promote ethical, interest-free, and inclusive financial services specifically tailored for micro, small, and medium enterprises (MSMEs) and underserved sectors in the region.
Mayor Hataman Leads Advocacy for Islamic Finance
The caravan was spearheaded by Isabela City Mayor Sitti Djalia Turabin-Hataman, a long-time champion of financial inclusion and the principal author of the Islamic Banking Law during her tenure as an Anak Mindanao representative in Congress. Mayor Hataman emphasized the urgent need to address the limited access many entrepreneurs and communities have to conventional banking systems. She highlighted Islamic Banking as a transparent, fair, and socially responsible alternative that aligns with the values of Muslim Filipinos.
In an interview, Mayor Hataman expressed her commitment to raising awareness about available Islamic banking services. "I really want people, especially the Muslim Filipinos, to know that we already have banks offering Islamic banking services and products," she stated. She pointed to surveys indicating a high number of unbanked Muslims, with many citing the lack of accessible Islamic banks as a primary reason. "We have to push for the law. The law is here, but it hasn't been used by many of our prospective beneficiaries of the law," Hataman added, underscoring the importance of community engagement and education.
Regulatory Framework and Expert Insights
The event brought together policymakers, financial experts, and community leaders to foster greater understanding of Islamic finance in the Philippines. Lawyer Arifa Ala, Bangko Sentral ng Pilipinas (BSP) senior assistant governor, provided key insights into the country's regulatory landscape. She explained that the Philippines operates under a single regulatory framework for Islamic banking, where all existing banking regulations apply equally to both conventional and Islamic institutions, supplemented by specific rules to address the unique characteristics of Islamic finance.
This approach ensures a level playing field while accommodating the ethical principles of Islamic banking, such as the prohibition of interest (riba) and the promotion of risk-sharing and asset-backed transactions.
Showcasing Products and Services
The Islamic Banking Caravan featured interactive booths from leading financial institutions, offering a firsthand look at Islamic finance products and services. Participants had the opportunity to explore offerings from:
- Al-Amanah Islamic Investment Bank of the Philippines
- Maybank Philippines
- Pru Life UK
- Card Bank, Incorporated
These displays aimed to demystify Islamic banking and encourage adoption among local businesses and individuals seeking ethical financial solutions.
Future Impact and Community Outreach
Mayor Hataman expressed optimism that participants would become ambassadors of Islamic finance, re-echoing the knowledge gained during the caravan in their respective communities. This grassroots approach is expected to amplify the initiative's reach and drive greater utilization of Islamic banking services across Basilan and beyond.
The caravan was held in partnership with the BSP-Zamboanga Branch, highlighting collaborative efforts to enhance financial literacy and access in the region. As the first of its kind in Isabela City, this event marks a pivotal moment in the push for inclusive economic growth and sustainable development through ethical finance.
