Much Interest In Malaysia's Financial Sector Liberalisation: Bernama

KUALA LUMPUR, May 6 (Bernama) -- There has been much interest in the financial sector liberalisation announced recently, said Bank Negara Governor Tan Sri Dr Zeti Akhtar Aziz here, today.

"There have been a lot enquiries in all the areas announced under the liberalisation, such as new licences and an increased foreign stake in domestic financial institutions," she said, when asked about the response to the liberalisation.

"Some institutions are already in preliminary discussions," Zeti said, after the opening of the Asia Regional Forum on Policy and Regulation of Financial Inclusion here, Wednesday.

Last week, Prime Minister Datuk Seri Najib Tun Razak announced a significant package of measures to liberalise the financial sector.

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Islamic Bank of Asia 'excited' by bank rule changes in Malaysia: Asia One

By CONRAD TAN

SINGAPORE'S Islamic Bank of Asia (IB Asia) is 'very excited' by the news that Malaysia is opening up its banking sector further to foreign players and will consider taking a stake in an Islamic bank there or applying for a local banking licence in future, chief executive Vince Cook said yesterday.

'That's something we'd definitely be considering,' he told reporters here in a conference call to announce a new product for the bank.

'We've said consistently from the beginning that having some business and some representation in Malaysia is part of being a credible regional player in the Islamic banking space.'

Last Monday, Malaysian Prime Minister Najib Razak said the government would issue up to six new licences to foreign financial institutions this year, including two to foreign Islamic banks, as part of broader, long-term changes to the country's financial services sector.

He also said that foreigners would be allowed to own majority equity stakes of up to 70 per cent in some local financial institutions, including Islamic banks, compared with 49 per cent previously.

'Obviously, it's a bit early to see how those rule changes will be implemented and what it'll actually mean for us, but we're very excited by the prospect,' Mr Cook said.

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Islamic Banking Assets Up 23 Pct: Bernama

KUALA LUMPUR, March 2 (Bernama) -- The country's Islamic banking system continued to expand last year where assets, deposits and financing recorded annual increase of 23 percent, 26.9 percent and 22.5 percent respectively.

Deputy Finance Minister, Datuk Ahmad Husni Mohamad Hanadzlah said total Islamic banking assets as of to date stood at RM192.8 billion, deposits RM154.6 billion and financing RM104.6 billion.

The risk rated capital ratio meanwhile stood at 15.2 percent and surplus capital was RM8.0 billion as at end of December last year.

Net non performing loans meanwhile declined to 2.4 percent, he said in reply to a question from Dr Dzulkefly Ahmad (PAS-Kuala Selangor) during the question and answer session at the Dewan Rakyat sitting in Parliament Monday.

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Deloitte Chooses Malaysia For Islamic Finance Hub: Bernama

KUALA LUMPUR, Feb 24 (Bernama) -- Deloitte has set up an Islamic finance centre of excellence in Malaysia to provide consultation on Islamic finance for the Asia Pacific region.

This is the professional services firm's only such centre in the region and one of its three globally together with London and Dubai.

Deloitte's Asia Pacific chief executive officer Chaly Mah Chee Kheong said the company had started to build a team of between eight and 10 professionals to be based in the Kuala Lumpur office and would continue to recruit more.

"The concept of a centre of excellence will be a core of people to understand Islamic finance and all the complexities around this product," Mah said at a media conference here today.

"We have similar teams in the Middle East and London as well," he said.

Deloitte's Islamic finance specialist Daud Vicary Abdullah said the centre of excellence was complementary to Islamic banking services.

"We are not a training centre although we are prepared to train. We do business directly with clients at our level of expertise," Daud said.

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Islamic banking rising but impact is minimal: The Star

By ELAINE ANG

Prospects good but it contributes only about 10% to earnings

PETALING JAYA: Although Islamic banking business is expected to remain on the uptrend, its contribution will have minimal impact on the total income of local banks, analysts said.

TA Securities noted that while prospects were still good for Islamic banking in the country, it contributed only 10% to 11% on average to the total income of the country’s nine listed banks in the third quarter ended Sept 30, and 9% in the second quarter.

However, for the third quarter of 2008, Islamic banking income for these banks grew 3.7% versus the second quarter despite a 15.7% drop in the banks’ total income.

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Islamic finance in the limelight: The Edge

by Racheal Lee Mei Nyee

KUALA LUMPUR: Ever since the US housing bubble burst in 2007 leading to the collapse of the global financial system last year, investors have been scurrying to seek alternative investment platforms and Islamic finance is deemed to be one of the viable and attractive options.

Aware of the huge potential in Islamic finance, Malaysia had been preparing the groundwork for a couple of decades and is now poised to become a global Islamic finance hub. Regional fund managers and investors are keeping a keen eye to take advantage of the vast opportunities available here.

It has been reported that Islamic banking assets in the Asia-Pacific account for about US$450 billion (RM1.62 trillion), which is 60% of the global Islamic banking market. The numbers are expected to grow.

According to reports, the Malaysian Islamic finance sector has grown at a compound annual growth rate (CAGR) of 28% in the last 15 years.

As at end-November 2008, the country’s Islamic banking assets rose 18.7% year-on-year (2007: 19.2%) to RM186.6 billion (2007: RM157.2 billion) and accounted for 14.3% (2007: 12%) of total assets in the banking sector.

Bank Negara Malaysia (BNM) wants the Islamic banking industry to constitute 20% of the overall banking and insurance market by 2010.

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