by: TATO M. USMAN, MD, MPAIM, DSHRMD
Jurisconsult on Islamic Health
19 Sep 2019, Cotabato City, BARMM – RDI-BARMM held a session early this afternoon to tackle Islamic banking in the Philippines.
Dr Nadzir Ebil, Doctor of Shari’ah, led the review on Islamic banking in preparation for its implementation in BARMM after President Duterte approved the law recently.
The law must have an IRR or Implementing Rules and Regulations before it will be realised.
Islamic banking is already implemented in non-Muslim countries like in Europe and Asia.
If implemented in BARMM, it will pave the way for Muslims and non-Muslims who want to avail loans with no interest or to invest business with the bank.
With this banking system, depositors have the choices whether to open an account for savings or invest in the banking business and have an ROI or Return of Investment.
Meaning, if the bank gains the depositor will also earn but if the bank will not gain then the depositor will not also earn.
“For example, if somebody wants to buy a car through financing, the Islamic bank could buy the car in cash then let it sell in higher prices through instalment for those who want to avail for it because it falls within halal financing”, according to Dr Ebil.