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Japan’s biggest bank to launch Islamic Finance in Middle East, Asia

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  • Japan’s Bank of Tokyo Mitsubishi UFJ plans to extend a full range of Islamic financial services products in the Middle East and Asia which are to be launched from its Malaysian based unit.

TOKYO, Dec 16 (KUNA) Bank of Tokyo-Mitsubishi UFJ, a unit of Japan’s biggest bank by assets, will offer a broad range of Islamic financial services in the Middle East and Asia, with the business set to kick off with its local unit in Malaysia, a major Japanese financial daily reported Tuesday.

Bank of Tokyo-Mitsubishi UFJ (Malaysia) Bhd has already obtained a licence as an international currency business unit from Bank Negara Malaysia, the central bank of this country, according to the Nikkei Shimbun. The license allows the unit to offer Islamic finance in foreign currencies such as the yen and the dollar.

The Islamic finance section will have its own dedicated staff, and receive deposits and provide loans using accounts separate from the bank’s other operations, the daily said.

The bank has established a Shariah committee consisting of Islamic legal scholars to ensure that each transaction is in compliance with Islam, which prohibits the paying and charging of interest.

Bank of Tokyo-Mitsubishi UFJ plans to expand such operations to other countries in the Middle East and Asia, the report said.

A revision to the enforcement ordinance of Japan’s Banking Law has enabled banks to offer Islamic finance operations through their subsidiaries.

Source: http://www.zawya.com

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Written by Suapi Shaffaii

December 17, 2008 at 1:05 am

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