Global Islamic banks well-capitalised to face challenges

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Kuala Lumpur

While global Islamic banks are expected to experience slow loans growth this year due to the subdued economic environment, the industry is well-capitalised to weather this challenging period, says a market player.
Banking Regulation and Supervision Agency of Turkey, Vice Chairman, Dr Yakup Asarkaya said currency devaluation in emerging markets would also potentially affect loans growth for regional players.
“Despite the decline, we do not see this causing any problem for regulatory agencies as there is still a lot of capital in Islamic banks,” he told reporters on the sidelines of the seminar on “Islamic Finance and Global Regulation: Moving Targets and New Horizons’ here today.
The one-day seminar was organised by the Islamic Financial Services Board (IFSB), in conjunction with IFSB’s Annual Meetings and Side Events 2017 from today until April 6.—Bernama