mohammadhuda_1968
02-15-2007, 12:58 PM
Zeti Akhtar Aziz wants Japanese businesses to embrace the Islamic financial system
The Governor of Bank Negara Malaysia, Malaysia's central bank, believes that Japanese banks may be able to provide an important channel for a system of investment that continues to spread throughout the world
The Islamic finance system has special rules based on the teachings of the Koran. For example, interest is prohibited
Businesses that deposit their funds into these banks receive no interest. Instead, they jointly invest their money with the banks and then share the profits
Zeti wants Japanese banks to link Japanese businesses with the petrodollars of the oil-producing countries in the Middle East
"This could be an important channel for strengthening ties between Asia and other parts of the world, especially the Middle East," Zeti said
The financial system is growing rapidly, mainly due to revenue from oil. At present, more than 200 banks in about 50 countries use the system. It is said that the total financial assets managed by them amounts to about $450 billion (54 trillion yen)
Malaysia has been positively engaged in Islamic finance since the Asian currency crisis in 1997
"In order to achieve economic development after the crisis, we looked to new potential areas of growth. One of them was Islamic finance (which could attract funds from the Middle East)," Zeti said
After the crisis, Malaysia began working to make itself an Islamic financial center in Asia
At present, Chinese companies and the World Bank use the Malaysian financial system to raise huge amounts of funds using Islamic banking methods
When asked about Japanese banks' "slow" attitude toward the Islamic financial system, Zeti said, "The financial sector is one of the faster-moving sectors in terms of innovation. New (financial) products and services change very rapidly. It is not the area that has been conservative."
Zeti expressed her hope that Japanese banks will begin to raise funds for investments from Islamic financial markets
She said the Islamic Financial Services Board (IFSB), originally set up in Malaysia to spread the use of Islamic financial system, is now setting the international standards for Islamic banking practices
The IFSB currently consists of about 110 organizations, including the International Monetary Fund.)
The Governor of Bank Negara Malaysia, Malaysia's central bank, believes that Japanese banks may be able to provide an important channel for a system of investment that continues to spread throughout the world
The Islamic finance system has special rules based on the teachings of the Koran. For example, interest is prohibited
Businesses that deposit their funds into these banks receive no interest. Instead, they jointly invest their money with the banks and then share the profits
Zeti wants Japanese banks to link Japanese businesses with the petrodollars of the oil-producing countries in the Middle East
"This could be an important channel for strengthening ties between Asia and other parts of the world, especially the Middle East," Zeti said
The financial system is growing rapidly, mainly due to revenue from oil. At present, more than 200 banks in about 50 countries use the system. It is said that the total financial assets managed by them amounts to about $450 billion (54 trillion yen)
Malaysia has been positively engaged in Islamic finance since the Asian currency crisis in 1997
"In order to achieve economic development after the crisis, we looked to new potential areas of growth. One of them was Islamic finance (which could attract funds from the Middle East)," Zeti said
After the crisis, Malaysia began working to make itself an Islamic financial center in Asia
At present, Chinese companies and the World Bank use the Malaysian financial system to raise huge amounts of funds using Islamic banking methods
When asked about Japanese banks' "slow" attitude toward the Islamic financial system, Zeti said, "The financial sector is one of the faster-moving sectors in terms of innovation. New (financial) products and services change very rapidly. It is not the area that has been conservative."
Zeti expressed her hope that Japanese banks will begin to raise funds for investments from Islamic financial markets
She said the Islamic Financial Services Board (IFSB), originally set up in Malaysia to spread the use of Islamic financial system, is now setting the international standards for Islamic banking practices
The IFSB currently consists of about 110 organizations, including the International Monetary Fund.)