Rise in Malaysia’s Islamic banking assets

Kuala Lumpur—Islamic banking assets in Malaysia now stand at more than a quarter, or 27 per cent, of the total banking system, surpassing the targeted 20 per cent under Bank Negara Malaysia’s financial sector master plan. According to the central bank, the country’s Islamic finance industry has grown to become a key segment in the financial system.
“This is a consequence of continuous initiatives to build a solid foundation focusing on infrastructural, institutional and capacity building measures, as well as robust regulatory and supervisory framework. “These measures are the cornerstones of the Islamic finance industry’s growth,” said Bank Negara governor Datuk Muhammad Ibrahim at the launch of the Educator’s Manual on Shariah and Practical Operational Standards focusing on the Murabahah principle, here.
He said there were now 27 players offering more than 100 financial products compared with fewer than four Islamic banks and Takaful players before 2000. According to a recent Thomson Reuters report on Islamic finance assets, Malaysia, Saudi Arabia and Iran hold almost 65 per cent of global Islamic assets last year. However, the firm said the Sukuk market had been struggling in the past couple of years due to the global economic uncertainty, which had caused lack of new players.—Agencies

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