| [Bloomberg] Islamic banking assets in Malaysia rose 16 pct last year after the government approved new licenses and eased restrictions on foreign ownership, the central bank said. Assets that comply with Islam’s ban on interest increased to 350.8 billion ringgit ($116 billion) and accounted for 21 pct of the total banking system, according to BNM’s 2010 annual report. Malaysia’s position as the global hub for Islamic finance will continue to be reinforced, supported by a diverse set of institutions, deep, liquid and efficient financial markets. Bank Negara will “focus on developing the players, infrastructure and expertise required to meet the needs of the growing economy. BNM granted five licenses in 2010 to foreign banks including National Bank of Abu Dhabi PJSC. Four family takaful operators, or Islamic insurers, also received permits including a joint venture between AIA Group Ltd. and Alliance Bank Malaysia Bhd. Shariah-compliant lending rose 19 pct to 222.3 billion ringgit in 2010 and accounted for 23 pct of total loans, according to the report. BNM will issue a blueprint this year that will detail strategies and recommendations for the Islamic finance industry. |
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