ISLAMIC FINANCE OFFERS GOOD GOVERNANCE TO CONVENTIONAL BANKING

KUALA LUMPUR, Aug 11 (Bernama) -- Islamic finance, which borrowed features
such as products from conventional banks, can now return the favor by lending
its set of principles for good governance and responsibility, said Raja Dr
Nazrin Shah, the Crown Prince of the northern state of Perak, Tuesday.

"To date, Islamic banks have borrowed from conventional finance in terms of
products. But, I think, the time has come where the flow of information and
knowledge can and should flow the other way as well," he said in his keynote
address at the second day of the World Capital Markets Symposium, here.

He said Islamic finance could also help the global finance industry to be
more aware of following the rules and curtailing excess as well as create an
infrastructure of honesty, fairness and integrity.

"But, I also believe Islamic finance can offer much more than this," Raja
Nazrin, who is also the financial ambassador for the Malaysia International
Islamic Financial Centre, said.

"At its heart, Islamic finance is an inspiration towards good finance. As
we have seen, good finance is about trust, and trust is a cornerstone of
stability.

"Therefore, I believe that Islamic finance can help break the vicious cycle
of boom and bust that has come to characterise global finance," he said.

Islamic finance is now a truly global market, participating across borders
with a vast range of investment alternatives including sukuk, mutual funds,
commodity funds, equity traded funds, real estate investment trusts, syariah
compliant derivatives and hedge funds.

Recent developments also included the possibility of an Islamic bank in
France, the publishing of a book on Islamic finance in Italian and syariah
compliant real estate funds in Australia.

There is also news of expected sukuk issuances from the United Kingdom,
Australia and Korea.

There have also been a diverse range of issuers of syariah compliant
products including the World Bank, the Islamic Financial Centre, the German
state of Anhalt-Saxony, Aston-Martin and Shell, which pioneered the sukuk.

"The world is interested and I believe Islamic finance to be up to the
challenge," Raja Nazrin said, adding that the industry is growing with more
demand seen from non-Muslim investors, not only in Malaysia but also abroad.

He stressed that one of the most important goals of the Islamic finance
industry should be to integrate into the global financial system.
-- BERNAMA