MALAYSIA LUCKLY TO HAVE GOOD CENTRAL BANK

KUALA LUMPUR, Feb 12 (Bernama) -- The Central Bank of Malaysia's (Bank
Negara Malaysia - BNM) ability in risk management and coming up with new
innovative products has enabled Malaysia to become the hub for Islamic finance,
says Nobel Prize-winning economist Joseph Stiglitz.

Expressing his admiration for BNM, he said a good central bank was
recognised for good risk management plan and push for innovation.

"You are lucky, you have the central bank that recognises good risk
management plan and its push for innovation has increased access to capital,
including for small and medium enterprises and micro credit," he said at a
dinner hosted by BNM in conjunction with its 50th anniversary celebration and
the High-Level Conference 2009 here Tuesday night.

He said the push for new forms of banking which responded to the demand of
Islamic finance has also resulted in making Malaysia a centre for Islamic
banking.

"A good institution provides stability in a sea of change," he said.

Stiglitz said Malaysia has managed to record strong economic growth after
Merdeka.

He said at the time of Independence, Malaysia's gross domestic product per
capita was about half or maybe lower than Ghana but now it has multiplied.

"Malaysia's growth is not a miracle. It is a result of hardwork of its
people including institutions among which, one of the prominent is BNM," he
said.

-- BERNAMA