BRIGHT FUTURE FOR ISLAMIC BANKS IN M'SIA, SAYS DEPUTY FINANCE MINISTER

KUALA LUMPUR, June 22 (Bernama) -- Islamic banks in Malaysia enjoy a bright
future as they are able to compete and have the resilience to survive in the
country's open and competitive economy, the House of Representatives was told
Wednesday.

Deputy Minister of Finance Dr Awang Adek Hussin said 21 Islamic banks
are operating in Malaysia, with RM351 billion (US$1=Rm3.03) in combined total
assets.

"There are 11 domestic Islamic banks; six foreign Islamic banks; and four
international Islamic banks, reflecting bright prospects to plans to transform
Malaysia into a premier international Islamic financial centre," he said when
replying to a question from Siti Zailah Mohd Yusoff, a member of parliament.

Siti Zailah sought explanation on the implications to Islamic banks in the
country following impending restructuring of the banks.

Awang Adek said the government has still no definite plans to carry out a
restructuring exercise for banks, including for Islamic banks, except if the
banks themselves conducted such an exercise.

He alluded to the government's merger of commercial banks under which 23
local banks were merged into nine banks.

"Any merger exercise in future will hinge on the business decision by the
banks' board of directors and shareholders.

"Given the increasingly competitive economic scenario today, banks will find
ways and means that will favour them," he said.

Awang Adek said completed merger exercises thus far had yielded good impact
for banks as they have emerged stronger with higher working capital, have opened
more branches and enjoyed higher national profile in the banking sector.

"The mergers have also enhanced banks' financial standing; improved their
internal risk management; quality of their assets, efficient management; and are
able to venture into regional and global markets," he added.

-- BERRNAMA