‘ISLAMIC BANKING TO CLINCH 30pc MARKET SHARE’
Industry urged to work together to achieve Bank Negara’s ‘40pc by 2020’ target
RHB Islamic Bank Bhd is optimistic the Malaysian Islamic banking industry as a whole will be able to hit the 30 per cent collective market share this year.
RHB Islamic managing director Datuk Adissadikin Ali said this would be achieved on the back of multiple factors.
“Last year, the Islamic banking market share hit 28 per cent, up from 26.8 per cent in 2015. Going by this momentum alone, I believe we will be able to break the 30 per cent ceiling by year-end,” he said after the signing of its strategic partnership with Credit Guarantee Corp (CGC) yesterday.
“Bank Negara Malaysia has been calling for all banks to focus on an Islamic-first initiative. The two biggest banks in Malaysia have been putting a lot of efforts into this and their combined collective Islamic assets can really help make that push.”
Adissadikin said, however, it was important for the industry to work together to realise Bank Negara’s goal of having 40 per cent of the country’s total banking asset Islamic by 2020.
“We need to make the 30 per cent this year in order to hit the 40 per cent target by 2020.”
According to Bank Negara data, there were currently 27 players offering more than 100 financial products, compared with fewer than four Islamic banks and takaful players before 2000.
According to a recent report from Thomson Reuters, Malaysia, Saudi Arabia and Iran held almost 65 per cent of global Islamic assets as of last year.
The partnership will enable RHB Islamic to become the first bank to provide Wholesale Guarantee Islamic Bumi scheme for Bumiputera small and medium enterprises. It will be offering a total of RM50 million funding, of which RM25 million will be guaranteed by CGC.