IslamicFinance.de

According to Fitch Ratings, Malaysia’s Islamic financing has maintained its double-digit growth in spite of the country’s moderating economy, with a 12.1% annual growth in the first half of 2016 (1H16). Although the growth was lower compared to last year, it still pushed Islamic loan share to 27.9% in the Malaysian banking system loan sector, versus 27% a year ago, as the sector’s expansion outperformed that of conventional banks over the past five years. Sukuk issuance also exceeded conventional bonds, with total market capitalisation rising to 62.2% by end-June 2016. Investment accounts expanded to RM36.2 billion by June this year from RM4.3 billion in July 2015, while Islamic deposits remained flat. Malaysia still leads the global Islamic finance industry in terms of regularisation, standardisation and sukuk issuance, accounting for over half of the issuances worldwide in 1H16.