Islamic Finance Remains Vibrant Despite Challenging Economic Environment - M'sian Central Bank Governor

KUALA LUMPUR, Jan 28 (Bernama) -- The global Islamic Finance market remained vibrant despite the challenging economic and financial environment, said Bank Negara Malaysia (Malaysia's Central Bank) Governor, Dr Zeti Akhtar Aziz. She said new risks were more complex as more profound systemic implications were emanating with the increasing forces of several factors including globalisation technological environment and the internationalisation of Islamic finance. "Cumulatively, these developments necessitate greater prudential regulation and supervisory oversight to ensure resilient and sustainable financial system," she said at the Islamic Financial Services Board Industry Engagement session Thursday. Zeti said Malaysian Islamic banks now had the potential to be better able to pursue their role as investment intermediaries through the offering of investment accounts in addition to the entrenched deposit products. "This is supported by the legal recognition of investment accounts in the Islamic Financial Services Act 3013, which provides a differentiation between the deposit account and investment account which offers a new investment avenue that caters for a wider range of investor risk-return preferences," she added. --BERNAMA