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Posts Tagged ‘Japan

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

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Points of Essence:

  • 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.

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Written by Suapi Shaffaii

December 17, 2008 at 1:05 am

Japan moves carefully toward Islamic finance

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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.

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Written by Suapi Shaffaii

December 12, 2008 at 7:06 pm

Japan’s shariah interest slowly grows

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Points of Essence:

  • Japan is poised to embark fully in Islamic finance as it works out the amendments in its banking laws to pave way for Japanese institutions to spread their wings in Islamic finance. Japan is also encouraged to beef up its capital market which only few Shariah compliant bonds were issued so far by its institutions.

The Japanese government is adapting its banking regulations and markets to fit with the rules of the Shari`ah-compliant lucrative industry of Islamic finance.

Japan’s Financial Services Agency says it recognises the need for its financial institutions to become competitive in the area and there are amendments to the banking law slated to be in place within about six months that should make it easier, at least for these institutions’ subsidiaries, to become more involved in this area of finance.

However, it may be that despite these observations, the FSA and the Ministry of Finance have more pressing issues to deal with.

“Japan, and the FSA in particular, is trying to improve the competitiveness of Japan’s capital markets, both as a global/regional centre and for the Japanese market,” says Stuart Porter, a partner at PwC in Tokyo. “Whilst Islamic finance is quite an interesting subject, it is simply one area they’ll want to encourage.

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Written by Suapi Shaffaii

October 7, 2008 at 11:07 pm

Posted in General Issue

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Islamic finance: Japanomics — Turkeynomics?

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Points of Essence:

  • As the world is grappling for a crisis prompted by the subprime fallout in the US, it is uncertain whether Japan or UK would be the first G8 country to issue sukuk.
  • Japan is fully engaged in Islamic financial market with JBIC planning to issue the first Japanese government sukuk for quite some time. The sukuk is however delayed due to a number of factor including the recent fatwa by (AAOIFI) that many sukuks were too synthetic and resembled the pure lending of money. On the contrary, Japanese corporations have been active on the sukuk issuance. There were also talks about UK government issuing sukuk but nothing had materialized.
  • Turkey is urged to take heed of Islamic finance developments in Japan.

As a matter of fact, Islamic finance is neutral and accessible to all, whatever conviction one might have. And Japanese industry has understood that and is fully engaged in the Islamic financial markets. It devotes itself with the same seriousness with which it started building cars some 40 years ago.In his opening speech at the Nikkei Islamic Finance Symposium in Tokyo in February, Bank of Japan (BoJ) Governor Toshihiko Fukui said: “Development of the Islamic form of finance will contribute to diversifying international financial markets and transactions and help fuel an expansion in market and business opportunities. Islamic finance is now an essential factor in understanding international financial mechanisms.”

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Written by Suapi Shaffaii

September 22, 2008 at 12:31 pm

Posted in General Issue

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