Liberalisation To Help Islamic Banks Venture Abroad

KUALA LUMPUR, April 27 (Bernama) -- The move to liberalise the financial sector here will spur the regionalisation and internationalisation of local Islamic banks, according to Bank Muamalat.
Its chief executive officer Datuk Mohd Redza Shah Abdul Wahid said the bank was optimistic of the move to increase the equity in Islamic banks to 70 percent from 49 percent as this would push local entities to compete abroad.
"This effort will accelerate the creation of Malaysia as a regional hub for Islamic banking and spur local Islamic banks to grow," he told Bernama here today.
The bank has yet to venture abroad, he said.
Mohd Redza said Bank Muamalat was already on the lookout for strategic partnerships that would enhance its value.
In announcing the financial liberalisation this Monday afternoon, Prime Minister Datuk Seri Najib Tun Razak said two new Islamic banking licences and two new commercial banking licences will be offered this year to foreign players bringing in specialised expertise.
In addition, three new commercial banking licences will be offered in 2011 to world-class banks that can offer significant value propositions to Malaysia, he said.
-- BERNAMA (April 27, 2009 19:55 PM)