Amending Presidential Decree No. 264, Creating The Philippine Amanah Bank

Case Overview and Summary

Presidential Decree No. 542 Amending Presidential Decree No. 264, Creating the Philippine Amanah Bank

Purpose and Objectives:
- To provide credit, commercial, development and savings banking facilities at reasonable terms to the primarily Muslim provinces of Mindanao. (Section 1)
- To establish, acquire, develop and expand agricultural, commercial and industrial enterprises in these provinces. (Section 1)
- To rehabilitate, develop, expand and promote the socio-economic conditions of the economically depressed provinces of Mindanao, particularly the Muslim provinces. (Preamble)
- To provide more opportunities and incentives to Muslim citizens in community development and nation-building. (Preamble)

Key Provisions:
- Creation of the Philippine Amanah Bank as a body corporate with its principal place of business in Zamboanga City and a lifespan of 50 years. (Section 1)
- The bank shall be based on the Islamic Concept of Banking, following the no-interest and partnership principles. (Section 1)
- All profits assigned as dividends to the government shares, and all remaining net profits after payment of dividends to other stockholders, shall be transmitted to the Muslim Development Fund of the Philippine Amanah Bank. (Section 2)
- The religious beliefs and practices of Muslim citizens shall be followed and respected, unless contrary to law, good morals and public policy. (Preamble)

Coverage:
- The primarily Muslim provinces of Mindanao, principally North Cotabato, Maguindanao, Sultan Kudarat, Lanao del Sur, Lanao del Norte, Sulu, Basilan, Zamboanga del Norte, Zamboanga del Sur and Palawan. (Section 1)

Repealing Clause:
- All laws, decrees, orders, rules and regulations or parts thereof inconsistent with this Decree are repealed or modified accordingly. (Section 3)

Effectivity:
- This Decree shall take effect immediately. (Section 4)