Transforming Marawi’s Transactions to Islamic Finance

Abstract

This study aimed to find out the views of the different respondents regarding transactions in the aspects of banking, insurance and loans. The respondents of this study were bankers, employees, Ulama and professionals. To address this concern, the study was done through survey method by distributing questionnaire to 200 respondents. To determine the number of participants, purposive sampling technique was used in collecting the samples, and random sampling in selecting the number of respondents involved in the study. The major findings of the study showed that most of the respondents believed that by transforming transactions to Islamic finance, it will help in the prohibition of Riba (Usury) and bank-based interest free. Also, most of the respondents believed that Islamic finance will help them in their financial needs compared to conventional banks. Findings further denote on the need to strengthen Islamic finance in Marawi City. Thus, it is hereby recommended that Islamic finance should be implemented as it represents the true meaning of transactions in Islam, and it is a praiseworthy alternative for Muslims. Also, it is recommended on the existing Land bank and Philippine National Bank in Marawi City to open for a separate Islamic window wherein the terms for deposit and savings are in Islamic conducts. As for the Insurance and loans, it would be best for Muslims to have its own Islamic pawnshop and an Insurance company equivalent to Takaful which follows the concept and Shari’ah principles on Islamic finance. Additional recommendation is for Muslims to support the development of Islamic finance in Marawi City for economic growth and opportunities, and for global competitiveness. Moreover, an emphasis on the need for Ulama and those who are expert in this area are to raise awareness among others. The current situation of Marawi’s residents because of the Siege is an indicator of the need to transform the place’s transactions to Islamic ways. Finally, a room for improvement on the aspect of the knowledge on Islamic finance as it is required for Muslims to exercise what is right and due to his fellow Muslims.

https://doi.org/10.26803/ijhss.11.5.2