ID :
145155
Thu, 10/07/2010 - 11:18
Auther :
Shortlink :
https://oananews.org//node/145155
The shortlink copeid
ISLAMIC FINANCE HAS ROLE IN SHAPING FUTURE GLOBAL FINANCIAL SYSTEM
KUALA LUMPUR, Oct 6 (Bernama) -- Islamic finance has a role in shaping the
future of the global financial system and reinforcing ethical and moral values
that are inherent in Islamic finance principles and fundamental towards
promoting the stability of the global financial system.
Bank Negara Malaysia (Malaysia's central bank) Deputy Governor Muhammad
Ibrahim said ongoing efforts to further strengthen the resilience of Islamic
financial industry would enhance the prospects for global growth and the
potential of Islamic finance to contribute towards global financial stability.
In the last decade, Islamic finance had evolved to become a complete and
competitive form of financial intermediation that served both Muslim and
non-Muslim consumers and businesses, he said.
The Islamic finance industry was currently worth more than US$1 trillion and
was growing at a rate of 15 to 20 per cent annually, with anticipation of
further growth to reach US$2 trillion in the next three to five years.
"More countries around the world are seeking to further develop Islamic
finance within their jurisdictions.
"Its appeal as a competitive and innovative form of intermediation has led a
number of established conventional players to enter the Islamic finance
industry, thus widening the diversity of Islamic financial institutions and its
product range," he said in his speech at the 12th Asia-Europe Business Forum
in Brussels on Monday.
In Malaysia, Muhammad said the Islamic financial system operated in parallel
with the conventional financial system.
With a humble beginning of establishing the first Islamic bank in 1983,
Islamic finance in Malaysia had evolved to become a comprehensive domestic
Islamic financial system, comprising Islamic banking institutions, takaful
industry, Islamic money and capital markets.
He said Malaysia's Islamic banking sector grew 20 per cent annually since
2001 in terms of assets.
As at end-June 2010, the share of Islamic banking assets in the total
banking sector has expanded to reach 20.9 per cent as compared to 6.9 per cent a
decade ago.
"Malaysia remains as the world's largest sukuk market, accounting for more
than 60 per cent of global sukuk issuances.
"Islamic finance prospers in Malaysia because it is competitive, innovative
and in sync with what the market wants," he added.
future of the global financial system and reinforcing ethical and moral values
that are inherent in Islamic finance principles and fundamental towards
promoting the stability of the global financial system.
Bank Negara Malaysia (Malaysia's central bank) Deputy Governor Muhammad
Ibrahim said ongoing efforts to further strengthen the resilience of Islamic
financial industry would enhance the prospects for global growth and the
potential of Islamic finance to contribute towards global financial stability.
In the last decade, Islamic finance had evolved to become a complete and
competitive form of financial intermediation that served both Muslim and
non-Muslim consumers and businesses, he said.
The Islamic finance industry was currently worth more than US$1 trillion and
was growing at a rate of 15 to 20 per cent annually, with anticipation of
further growth to reach US$2 trillion in the next three to five years.
"More countries around the world are seeking to further develop Islamic
finance within their jurisdictions.
"Its appeal as a competitive and innovative form of intermediation has led a
number of established conventional players to enter the Islamic finance
industry, thus widening the diversity of Islamic financial institutions and its
product range," he said in his speech at the 12th Asia-Europe Business Forum
in Brussels on Monday.
In Malaysia, Muhammad said the Islamic financial system operated in parallel
with the conventional financial system.
With a humble beginning of establishing the first Islamic bank in 1983,
Islamic finance in Malaysia had evolved to become a comprehensive domestic
Islamic financial system, comprising Islamic banking institutions, takaful
industry, Islamic money and capital markets.
He said Malaysia's Islamic banking sector grew 20 per cent annually since
2001 in terms of assets.
As at end-June 2010, the share of Islamic banking assets in the total
banking sector has expanded to reach 20.9 per cent as compared to 6.9 per cent a
decade ago.
"Malaysia remains as the world's largest sukuk market, accounting for more
than 60 per cent of global sukuk issuances.
"Islamic finance prospers in Malaysia because it is competitive, innovative
and in sync with what the market wants," he added.
