Islamic Finance News Portal – Bringing you the latest updates in global Shariah finance

Watch out for news alert!

Archive for the ‘Financial Centres’ Category

Japan moves carefully toward Islamic finance

leave a comment »

Points of Essence:

  • The current global financial crisis and the fact that Japan is in recession have not put a restraint to the country’s interest to introduce Islamic finance. Substantial legal framework has already been put in place to allow Islamic finance operations in Japan. At the global front, Japanese institutions play significant role in Islamic finance by getting involved directly in issuing Shariah compliant financing. Membership with the IFSB has also put Japan on the global  Islamic finance radar. Asahi has the report.

BY MANABU HARA, STAFF WRITER

The Japanese government has taken a small but important step toward introducing Islamic finance here amid the global financial crisis triggered by unsustainable subprime loans in the United States.

Earlier this month, the Financial Services Agency (FSA) amended financial regulations to let bank subsidiaries handle Islamic finance operations.

Read the rest of this entry »

Advertisements

Written by Suapi Shaffaii

December 12, 2008 at 7:06 pm

Riding The Islamic Banking Tide

leave a comment »

Points of Essence:

  • Hong Kong is still firm on the Islamic financial hub race despite the onslaught of global financial crisis. All the right infrastructures are being installed to accommodate Islamic finance. With a priority to develop Islamic bond market, Hong Kong is eyeing a strategic alliance with the established Islamic financial like Malaysia to boost its profile. Bernama has the report.

From Tham Choy Lin

HONG KONG, Dec 2 (Bernama) — Last October, Hong Kong Chief Executive, Donald Tsang, announced the island’s financial hub would establish itself as an Islamic finance centre.

Read the rest of this entry »

Written by Suapi Shaffaii

December 2, 2008 at 4:19 pm

Dr. Zeti: Sustaining Malaysia as a Platform for International Islamic Finance

leave a comment »

Points of Essence:

  • The Islamic banking in Malaysia continued to record growth with assets size stood at RM234.9 billion, a jump of 23 % from the previous year. The industry accounted for 16.7% of total assets in the industry.  With a total deposit of RM180.4 billion (27.7%  increase from last year) and a hike of 24.5%  in total financing to RM143.4 billion together with 93 new full-fledged Islamic banking branches opened this year, Malaysia is expected to maintain its lead in Islamic finance.
  • On the capital market side, the Malaysian sukuk market had a comfortable average annual growth of 22 % since 2001. Building up its niche in structuring innovative Islamic financial instruments, a slump in the sukuk issuance had no effects on Malaysia as the demands for more innovative products like Sukuk Musharakah had increased to 84% surpassing 58% mark of the total sukuk issuance in 2007. More new products have been churned out including residential mortgage backed securities, Commodity Murabahah deposit products, commodity based financing, credit card based on ujrah, as well as, structured products based on Musharakah, Mudarabah and Ijarah.
  • A conducive environment for innovative advancement that is supported by a regulatory framework will always be the hallmark of lslamic finance in Malaysia. as that ensures not only the stability of the system but also promotes the active and vibrant functioning of the system. The liberalization of the Islamic finance industry with the setting up of foreign Islamic subsidiaries in its Islamic financial system will enhance the outreach of Islamic finance and strengthen Malaysia’s international linkages. With all the framework put in the right places, Malaysia is set to sustain its status as an Islamic finance leader. Read the full speech by the Malaysian central bank’s governor when opening HSBC Amanah Malaysia in Kuala Lumpur recently.

Governor’s Address at the Launching of HSBC Amanah Malaysia Berhad: “Sustaining Malaysia as a Platform for International Islamic Finance”

Speaker : Governor Tan Sri Dato’ Sri Dr. Zeti Akhtar Aziz
Venue : Kuala Lumpur, Malaysia
Date : 25 November 2008
Language : English

It is my pleasure to be here today at this official launch of “HSBC Amanah Malaysia Berhad” (HSBC Amanah). This launch is significant in a number of respects. It reflects the continued expansion of Islamic finance in Malaysia , taking place at a time of great uncertainty in the global financial system. The launch of HSBC Amanah, as an Islamic subsidiary of an international financial group, is also significant as it will contribute towards enhancing further the international dimension of Islamic finance in Malaysia , thus strengthening our international financial and economic linkages with other parts of the world.

Read the rest of this entry »

Written by Suapi Shaffaii

November 28, 2008 at 4:35 pm

London a natural home for Islamic finance

with one comment

Points of Essence:

  • The availability of key components of robust frameworks, leading advisory firms, strength and depth in capital markets and intellectual capital, makes London a natural base for Islamic finance. Zawya has the report.

Islamic Finance Council UK Executive Board Member Omar Shaikh

23 November 2008
The UK Pavilion at the 15th World Islamic Banking Conference (WIBC) in Bahrain demonstrates that despite its origins overseas, Islamic finance has found a natural home in London and the UK.

This is the second time the event has supported a UK Pavilion, hosted by UK Trade and Investment (UKTI), and reflects growth plus the diversity and complimentary skills UK companies contribute to Islamic finance.

Islamic Finance Council UK Executive Board Member Omar Shaikh said:

Read the rest of this entry »

Written by Suapi Shaffaii

November 23, 2008 at 8:30 pm

Posted in Financial Centres

Tagged with , ,

Malaysia to further liberalize its financial sector

leave a comment »

Points of Essence:

  • Malaysia is preparing a blueprint to further liberalize its financial sector, both conventional and Islamic Islamic financial sector as it is keen to attract foreign investments. This will boost its profile as a leader in the global Shariah bond market. The Guardian has the report.

Malaysia to further open sharia banking system

  • Reuters, Thursday November 20 2008

By Liau Y-Sing and Varsha Tickoo KUALA LUMPUR, Nov 20 (Reuters) – Malaysia will further open up its Islamic finance sector to foreign investors, the central bank chief said on Thursday, as it faces increasing competition to retain its position as the leader in the global sharia bond market.

Read the rest of this entry »

Written by Suapi Shaffaii

November 22, 2008 at 10:16 am

Bursa Malaysia eyes Turkey, M.East Islamic mkts

leave a comment »

Points of Essence:

  • Bursa Malaysia is collaborating with the stock exchanges in Turkey and then Middle East to develop their Islamic financial markets. This is in addition to the same initiative done with Korea to develop its electronic trading platform for Islamic commodity trading as well as commodity murabaha instruments. The international collaboration will help fueled Malaysia’s aim to become a global hub for Islamic finance.  Reuters has the report.

KUALA LUMPUR, Nov 19 (Reuters) – Bursa Malaysia, the Malaysian stock market operator, is looking to work with stock exchanges in Turkey and the Middle East to help develop their Islamic financial markets, its CEO said on Wednesday.

Read the rest of this entry »

Written by Suapi Shaffaii

November 20, 2008 at 12:02 am

London’s new mayor encouraged by the growth of Islamic banking and insurance

leave a comment »

Points of Essence:

  • As London is emerging an international Islamic financial center, it’s vital to have someone at the core heart of the City’s administration who will appreciate the significance of Islamic finance. The city’s newly appointed mayor, Ian Luder will perhaps take this pointer forward. Times Online reported.

London welcomes new mayor Ian Luder to office

Ian Luder, whose father taught at a school in Hackney, has selected finanical education as the theme of his year as Lord Mayor of the City of London

Ian Luder, whose father taught at a school in Hackney, has selected finanical education as the theme of his year as Lord Mayor of the City of London

By Martin Waller

One of Ian Luder’s childhood memories is of being taken regularly into the City to watch the Lord Mayor’s Show. This is the occasion when the latest to occupy a post that dates back to 1189 tours his constituency in his gilded coach. Today, Mr Luder will take his place in the coach, the 681st to serve as Lord Mayor. One has to ask if that little boy ever contemplated this.

“All little boys dream. My parents brought me to the show. My mother made me learn the names of the lord mayors from a very early age.” Not all the way back to 1189? No, but “I had a penchant for remembering things. I liked history, facts and statistics. I think the little boy who watches the show and doesn’t dream that one day he might be in that golden coach is a very strange boy.”

Read the rest of this entry »

Written by Suapi Shaffaii

November 14, 2008 at 11:55 am

Posted in Financial Centres

Tagged with , , ,