ID :
149466
Thu, 11/11/2010 - 02:59
Auther :
Shortlink :
https://oananews.org//node/149466
The shortlink copeid
INTERNATIONALISATION OF ISLAMIC FINANCE BRINGS POTENTIAL, SAYS BANK GOVERNOR
KUALA LUMPUR, Nov 10 (Bernama) -- The internationalisation of Islamic
finance offers potential for it to become a further means by which cross-border
financial flows are intermediated between economies worldwide.
Bank Negara (central bank) Malaysia's governor Dr Zeti Akhtar Aziz, in
stating this, said Islamic finance as an increasingly important component of the
international financial system could be leveraged to facilitate surplus funds to
be intermediated to economies that presented new opportunities.
"Expanding at an average annual rate of 20 per cent, Islamic finance
represents one of the fastest growing segments in the financial industry. The
Islamic financial services industry is now approximated to be worth more than
US$1 trillion," she said in her keynote address at the World Congress of
Accountants (WCOA) here Wednesday.
Malaysia has developed a comprehensive Islamic financial system that
operates in parallel with the conventional financial system, Zeti said.
"The Islamic banking system in Malaysia currently accounts for 20 per cent
of our banking system while the sukuk market accounts for more than 50 per cent
of the bond market," she said.
Zeti said that following liberalisation initiatives, there had been greater
foreign institutional presence and substantial foreign participation in
Malaysia's Islamic financial system.
"Of significance is that the participation from multinational corporations
and international financial institutions comes from both Muslim and non-Muslim
countries," she said.
The Islamic financial system in Malaysia is also well supported by a robust
regulatory and supervisory regime, legal and Syariah framework, and payment and
settlement systems that are also important in supporting its sustainability,
Zeti said.
The internationalisation of Islamic finance has been facilitated by the
further development of the international Islamic financial infrastructure,
prompting Islamic financial institutions to venture beyond their domestic
borders, she said.
Today, there are more than 600 Islamic financial institutions that operate
in more than 75 countries.
Similarly, the liberalisation of the Islamic financial markets has resulted
in increased foreign participation to raise funds in these markets.
"This participation also includes institutional investors that have surplus
funds for investment," Zeti said.
The fastest growing segment of the Islamic financial system is the sukuk
market which has become a significant platform upon which international
financial and economic inter-linkages are being fostered, she said.
"Sukuk instruments are fast emerging as an attractive new asset class for
investors while becoming a preferred financing and capital raising option for
issuers," she said.
Zeti said that growing at an average annual rate of about 40 per cent, the
global sukuk market has demonstrated its ability to effectively intermediate
funds across borders, allocating surplus funds from one part of the world to
productive investment opportunities in other parts.
"Today, the sukuk market has become a truly global product, generating
significant cross-border financial flows," she said.
-- BERNAMA
finance offers potential for it to become a further means by which cross-border
financial flows are intermediated between economies worldwide.
Bank Negara (central bank) Malaysia's governor Dr Zeti Akhtar Aziz, in
stating this, said Islamic finance as an increasingly important component of the
international financial system could be leveraged to facilitate surplus funds to
be intermediated to economies that presented new opportunities.
"Expanding at an average annual rate of 20 per cent, Islamic finance
represents one of the fastest growing segments in the financial industry. The
Islamic financial services industry is now approximated to be worth more than
US$1 trillion," she said in her keynote address at the World Congress of
Accountants (WCOA) here Wednesday.
Malaysia has developed a comprehensive Islamic financial system that
operates in parallel with the conventional financial system, Zeti said.
"The Islamic banking system in Malaysia currently accounts for 20 per cent
of our banking system while the sukuk market accounts for more than 50 per cent
of the bond market," she said.
Zeti said that following liberalisation initiatives, there had been greater
foreign institutional presence and substantial foreign participation in
Malaysia's Islamic financial system.
"Of significance is that the participation from multinational corporations
and international financial institutions comes from both Muslim and non-Muslim
countries," she said.
The Islamic financial system in Malaysia is also well supported by a robust
regulatory and supervisory regime, legal and Syariah framework, and payment and
settlement systems that are also important in supporting its sustainability,
Zeti said.
The internationalisation of Islamic finance has been facilitated by the
further development of the international Islamic financial infrastructure,
prompting Islamic financial institutions to venture beyond their domestic
borders, she said.
Today, there are more than 600 Islamic financial institutions that operate
in more than 75 countries.
Similarly, the liberalisation of the Islamic financial markets has resulted
in increased foreign participation to raise funds in these markets.
"This participation also includes institutional investors that have surplus
funds for investment," Zeti said.
The fastest growing segment of the Islamic financial system is the sukuk
market which has become a significant platform upon which international
financial and economic inter-linkages are being fostered, she said.
"Sukuk instruments are fast emerging as an attractive new asset class for
investors while becoming a preferred financing and capital raising option for
issuers," she said.
Zeti said that growing at an average annual rate of about 40 per cent, the
global sukuk market has demonstrated its ability to effectively intermediate
funds across borders, allocating surplus funds from one part of the world to
productive investment opportunities in other parts.
"Today, the sukuk market has become a truly global product, generating
significant cross-border financial flows," she said.
-- BERNAMA
