IslamicFinance.de

Bank Negara Malaysia governor Tan Sri Dr Zeti Akhtar Aziz is likely to leave when her term expires in April. Zeti said she had not received any request to stay on amid the current market volatility, a scenario which had fuelled speculation that her contract may be extended. She stressed that it was "very unlikely" for her term to be extended again, as the succession process is already underway. Zeti, who has served as governor for 16 years, was however tight-lipped on who her successor would be, saying she is not at liberty to discuss the matter. She, however, said the central bank will remain independent even with the appointment of a new governor. Zeti stressed that a politician should not be appointed as governor of the central bank.

The creation of a mega Islamic bank must fulfill the objectives of being able to undertake international business and facilitate cross border financial flows, said Bank Negara governor Tan Sri Dr Zeti Akhtar Aziz. She said that such a mega bank must also be able to support international trade and cross border investment activity. She was responding to a question about the license for the proposed mega Islamic bank as a result of a merger between CIMB Group Holdings Bhd, RHB Capital Bhd and Malaysia Building Society Bhd. Dr Zeti said Bank Negara wanted to see the internationalisation and enhancement of Malaysia’s financial and economic connectivity with other countries.

Tan Sri Dr Zeti Akhtar Aziz - governor of Bank Negara Malaysia - recently announced that the legislative process for the new legal framework for Islamic banking and takaful to be enacted is progressing. Not only will the new framework streamline the legal requirements across sectors but it is also expected to make sure that the law was reflective of the nature and features of Shariah contracts. Moreover, this way the degree of regulation would commensurate with level of risks that Islamic financial institutions, markets and products pose to the overall financial sytem.

According to Tan Sri Dr Zeti Akhtar Aziz, governor of Bank Negara Malaysia (BNM), Socially responsible investment (SRI) will appeal significantly to Islamic finance. In particular, the recent global financial crisis has played an important role. He further explains that apart from financial returns, SRI accords primary consideration to the impact on economic activity and on the broader society as well. This way, the important dimensions of environmental sustainability, social responsibility and governance can be incorporated.

Malaysian Governor calls to a more balanced global economic growth. She claims that the Islamic finance must include lower income groups in order to ease the access of financial services to all segments of society.

According to Bank Negara governor Tan Sri Dr Zeti Akhtar Aziz, there is more renminbi financing in the pipeline after the two issuances of offshore yuan sukuk out of Malaysia and a yuan bond issuance by Malaysian corporations. She said that the reason for this was that there was greater potential to raise funds in the currency, especially investments in China.

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In order to comply with the needs of the real economy, Islamic finance offers a complete and competitive solution in meeting funding and investment requirements of businesses.
Tan Sri Dr Zeti Akhtar Aziz, the Governor of Bank Negara Malaysia, noted that considering its international outreach and dimension, and ability to supply a total financial solution, Islamic finance is now at the point where it offers new opportunities to support the economy and overall financial stability.
The governor added that the now well-developed existing Islamic financial markets, involving the sukuk and Islamic money markets, have been especially instrumental in intermediating funds in the Islamic financial system.

A licence for the bank to create Asia's first multinational Islamic bank will awarded in the third quarter. This has the possibility to increase the ability of syariah-compliant lenders to carry out larger sukuk deals, after global sales more than doubled to US$14.7bil this year.
Five Pillars, an Islamic finance advisory firmfrom Singapore revealed its oppinion that it thinks that the amount may grow to about US$10bil in six to 10 years.

Central bankers from Malaysia, Indonesia have met in Jakarta on 18 July 2011 and discussed the need to improve cooperation in order to boost the development of Islamic finance in the two countries.
Governor Tan Sri Dr Zeti Akhtar Aziz of Bank Negara Malaysia and Governor Darmin Nasution of Bank Indonesia agreed on the need for joint initiatives to create an ‘enabling environment’.

Malaysia is well placed to weather the global financial crisis, well capitalised and with adequate liquidity, Bank Negara Malaysia governor Tan Sri Dr Zeti Akhtar Aziz told the Oxford Business Group (OBG), a global publishing, research and consultancy firm. She said several years of reforms, institutional development and capacity building, continuous efforts to enhance corporate governance and risk management standards and practices had significantly strengthened Malaysia’s banking system.

OBG is to publish The Report: Malaysia 2009, the latest of its annual business guides, with a comprehensive review of the country’s economy.