(29 October 2012 – Philippines) The Development Bank of the Philippines (DBP) received government approval this week to sell its 99.88 percent ownership in Al-Amanah Islamic Bank, the Philippines’ only Islamic bank.The sale by the state-owned DBP of its majority ownership in Al-Amanah Islamic Investment Bank of the Philippines has been approved by the Bangko Sentral ng Pilipinas, the central bank.
DBP, however, still has to secure the approval of the government’s Governance Commission for GOCCs to proceed with privatising the bank.
DBP took over Al-Amanah in 2008 after the government failed to privatise the Islamic bank. It invested P1 billion (A$2.3 million) into Al Amanah and charted a rehabilitation plan for the money-losing bank.
The government first attempted to privatize Al-Amanah in 2000 after it started incurring losses in 1990. From 1990 to 2007, Al-Amanah was managed by the Bureau of the Treasury. It is selling Al Amanah as it does not have the expertise in Islamic finance.
Its planned exit from Al Amanah, however, comes at a time when demand for Islamic financing worldwide is rising. Al-Amanah serves the banking needs of the Muslim community in the Philippines.