“AMANAH is ours, we should support it.”
Rising above impedimentsobstacles describes the Amanah Islamic Bank story.
Past clients abandoned the entity that was supposed to address the development needs of growing Muslim communities in Mindanao Philippines.
Corruption, undeveloped facilities, incompetent human resource, corporate losses became only some of the stumbling blocks since the bank was created by law in 1973.
But now the bank’s management is singing a different tune.
“We are back in business,” said Chairman and CEO Armand Samia and Vice President of Development Bank of the Philippines during the bank’s launching in Cotabato City.
The corporate vision and mission was unveiled revealing the new bank’s thrust to be the lead Islamic financial institution.
On November 14, 2007, the state-owned DBP completed its buyout of a 70 percent stake in the renamed Al-Amanah Islamic Investment Bank (AAIIBP), the country’s solitary Islamic bank.
The takeover deal raised DBP’s stake in the Mindanao Philippines Islamic bank to more than 90 percent.
Since then, the management has embarked on an aggressive rehabilitation program to refurbish and capacitate the nine branches of the bank.
The bank’s human resource boasts of graduates from elite schools.
Management officers are senior executives from the banking zone, aided by an Islamic Advisory Council. The branches are now online for the first time.
“The products of the bank include both conventional and Islamic deposits. Clients have a choice to accept the interest or not. We can also accommodate transactions for the public with service-providers such as electricity payments,” said bank consultant Idiosa Ursolino.
Confident to compete, the bank is now aiming to expand its clientele beyond Muslim communities.
With a flourishing Islamic finance industry abroad, the hype to support Islamic banking is catching wave here as well.
One of the indicators is the current administration and corporate support for the growing halal industry.
“Every perspective of a Muslim’s way of life involves money matters whether sadaqah, hajj (pilgrimage), waqaf, zakaah.
The potentials for partnership, profit-sharing and thus development are vast,” said Samira Gutoc, a member of the Board of the AAIIBP bank during an iftar dinner to mark online operations in the Marawi branch, in a city described as the lone Islamic city in the country.
Marawi Councilor Abdani Alonto said there were many local Muslim millionaires that could open accounts in the new Amanah.
“So much money is moving around but is deposited in other banks,” said Councilor Jehanne Mapupuno.
“We are glad to know that Amanahis coming true to form,” Mapupuno said.
“Amanah means trust in Arabic. Amanah is ours. We should support it,” said TESDA Provincial Director Tarhata Sumayan.
Some of the differences between interest-based commercial banks and Islamic banking practice include: the status of a conventional bank, in relation to its clients, is that of creditor and debtors, while the distinction of Islamic bank in relation to its clients is that of partners, investors and trader, buyer and seller; a conventional bank has to guarantee all its deposits while an Islamic bank can only guarantee deposits for deposit account, which is based on the principle of al-wadiah, thus the depositors are guaranteed repayment of their funds, however if the account is based on the mudarabah concept, client have to share in a loss position. (AAIIBP / PIA Marawi)
Distributed by www.Cebu-Philippines.net, an up-to-date guide to Cebu Philippines and the Philippines. Providing current and relevant information about visa, airlines, hotels, resorts, Mindanao in the Philippines, scuba diving, travel, health and wellness.
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