Sharia banks’ merger to bolster competitiveness of sharia finance: BI

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Jakarta

Merger of three state sharia banks will increase the competitive edge of the sharia domestic economy and finance, as Indonesia has huge potential to develop the sharia economy, Bank Indonesia (BI) Governor Perry Warjiyo stated.
“BI warmly welcomes the merger of sharia banks since it highly supports the development of sharia economy and finance,” Warjiyo noted during a virtual press conference following a meeting of BI’s board of governors here.
The BI governor explained that the merger of sharia banks aligned with a masterplan for development of the sharia economy and finance outlined by the National Committee for Sharia Economy and Finance (KNEKS).
The merger of sharia banks, subsidiaries of state-owned lenders, will also propel development of the halal value chain in the country, he asserted. Based on the global index, Indonesia’s ranking in sharia economy and finance is among the top 10 in the fields of finance, food, and fashion, Warjiyo stated.
Meanwhile, BI has strengthened its sharia monetary and macroprudential policy by issuing new initiatives to develop and expand the sharia money market, he affirmed.
“The BI has not only issued sukuk BI (BI sharia bonds) for the sharia monetary operation but also launched the sharia money market through various instruments in sharia money market,” he revealed. The three sharia banks are BRI Syariah, BNI Syariah, and Bank Mandiri Syariah. The agreement on merger of three sharia banks was inked on Wednesday as one of legal bases for merger of the sharia banks that is expected to commence in February 2021.—Antara News