Islamic banking assets make up 27 per cent of total banking system assets
KUALA LUMPUR: Malaysia’s Islamic banking assets make up a quarter or 27 per cent of the total banking system assets, Bank Negara Malaysia ( BNM) Governor Datuk Muhammad Ibrahim said.
He said the Islamic banking assets had grown beyond the targeted 20 per cent as originally intended in the BNM’s Financial Sector Masterplan (2001-2010).
“For the past three decades, Islamic finance in Malaysia has undergone a journey that is marked by various milestones.
“Islamic finance has become a key segment in the financial system.
“What was once a novelty is now a mainstream,” he said at the launch of the Educator’s Manual on Syariah Standard Murabahah yesterday.
The BNM governor highlighted that from less than four lslamic banks and takaful players before 2000, there are now 27 players providing over 100 financial products beyond the basic financial offerings.
“The industry is characterised by increasing competitiveness and innovation.
“The recently launched Investment Account Platform, which provides an online marketplace to match potential investors with viable ventures, is the latest initiative where the industry has cooperated to further enhance the offerings of Islamic banks,” he said.
Muhammad also said there is also greater acceptance of takaful with its penetration rate rising to 14.8 per cent of the population.
Meanwhile, Malaysia’s sukuk market constitutes more than 50 per cent of global sukuk outstanding for the past 16 years.
“Enhanced integration with the global market has enabled greater trade and financial linkages, and Malaysia’s pioneering initiatives and thought leadership in lslamic finance has enabled the country to advance innovation in the lslamic finance industry,” he said.
On the regulatory front, he said the modernisation of the regulatory framework through the Islamic Financial Services Act 2013 ( IFSA) provides an opportunity and space for Islamic financial institutions to offer new products and services.
Muhammad said BNM would be forming a steering committee made up of representatives from the industry and academia to undertake an in- depth review of strategic positioning of specialised institutions it is linked to, as well as those that had enriched the talent ecosystems over the years.
“The new steering committee will be as part of our efforts to reenergise and reinvent the Islamic finance talent development landscape,” he added.
— Bernama