MALAYSIA - BANKING - Malaysia May Liberalize Banking Sector

www.thejakartaglobe.com - Malaysia, the third-biggest economy in Southeast Asia, is considering opening up its banking system to foreign investors, a move seen by analysts as part of the country’s efforts to expedite integration into the so-called Asean Community in 2015.

Zeti Akhtar Aziz, governor of Bank Negara Malaysia, that nation’s central bank, said the country was preparing new banking rules to provide greater flexibility in the nation’s financial system.

“We are now pushing a new law in parliament for the full financial system,” Zeti said after delivering a keynote speech at the Wharton Global Alumni Forum in Jakarta on Friday. “We’re not sure when it will go, either this time or next time. Next time [may mean] in September. But that law will give us more flexibility in the licensing,” she said.   (source)

MALAYSIA - BANKING - Al-Rajhi bank unveils Commodity Murabahah

www.btimes.com.my - Al Rajhi Bank Malaysia on Monday introduced Collateralised Commodity Murabahah-i (CCM-i) as a new instrument for its Treasury use and is pleased to be the first Islamic financial institution to adopt such instrument in managing its daily money market transactions. The announcement was made at their Kuantan Branch launching ceremony which was graced by YAB Dato’ Seri DiRaja Adnan Yaakob, Menteri Besar Pahang.

On a similar note, in its recent announcement, Bank Negara Malaysia (BNM) has recently introduced the Collateralised Murabahah instrument. CCM-i, based on a Commodity Murabahah transaction and backed by a pledge mechanism, was introduced as an alternative solution in addressing the urgent demand of Islamic banks in managing their liquidity. It is a low credit-risk financial instrument for the Islamic interbank money market players under the Bank Negara Malaysia’s Standing Facility guideline; enabling Islamic banks to tap on liquidity by utilising their holdings of tradable sukuks and other acceptable Islamic securities as pledge for their liquidity requirements. (source)

HONG KONG - CAPITAL MARKETS- Hong Kong and Malaysia to Start Cross-Border Bond Trading System

www.bloomberg.net- The Hong Kong Monetary Authority will start a pilot platform with Bank Negara Malaysia and Euroclear Bank SA to spur trading of sukuk and Dim Sum bonds as the city aims to become China’s hub for Islamic finance and offshore yuan transactions.

The platform, which will start on March 30, will allow investors in Malaysia to buy yuan-denominated bonds in Hong Kong, Esmond Lee, executive director for financial infrastructure of the city’s de-facto central bank, told reporters today. Hong Kong investors would gain access to sukuks, or bonds that comply with Islam’s ban on paying interest, Lee said.  (source)

MALAYSIA - REGULATIONS - Bank Negara clarifies Fatwa ruling on forex trading Read more: Bank Negara clarifies Fatwa ruling on forex trading (2)

www.nst.com.my - KUALA LUMPUR: Bank Negara Malaysia said today that only licensed financial institutions and money changers are allowed to conduct foreign currency trading.

This statement came about after the National Fatwa Council's ruling on Wednesday that forex trading is forbidden for Muslims. (source)

MALAYSIA - REGULATIONS - Foreign Currency Trading

Foreign Currency Trading
Last Updated : 17 Feb 2012
Source By : www.bnm.gov.my

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FOREIGN CURRENCY TRADING

Bank Negara Malaysia wishes to inform the public that buying and selling of foreign currency in Malaysia is only allowed with licensed commercial banks, Islamic banks, investment banks  and international Islamic banks as provided for under the Exchange Control Act 1953 and  with licensed money services business providers (money changers) as provided for under the Money Services Business Act 2011.

In addition, Shariah-compliant financial products, including foreign exchange related transactions, offered and transacted by licensed Islamic financial institutions are approved by the Shariah Committee of the respective financial institutions with endorsement from the Shariah Advisory Council of Bank Negara Malaysia.

Bank Negara Malaysia
16 February 2012

MALAYSIA - FIQH - Forex Trading 'Haram', Says National Fatwa Council

www.bernama.com - KOTA BAHARU, Feb 15 (Bernama) -- The National Fatwa Council today ruled that foreign exchange trading (forex trading) is forbidden (haram) for Muslims.

Council chairman Tan Sri Dr Abdul Shukor Husin said forex trading is against Islamic law and creates confusion among Muslims.

"A study by the committee found that such trading involves currency speculation, which contradicts Islamic law. (source)

MALAYSIA - FIQH - Bank Negara, Fatwa Council Explains Foreign Currency Trading Status

www.bernama.com - KUALA LUMPUR, Feb 16 (Bernama) -- Bank Negara Malaysia clarified that buying and selling of foreign currency in Malaysia is only allowed with licensed commercial banks, Islamic banks, investment banks and international Islamic banks as provided for under the Exchange Control Act 1953.

Such trading is also allowed with licensed money services business providers (money changers) as provided for under the Money Services Business Act 2011. (source)

MALAYSIA - BANKING - Financial Sector Blueprint 2011 - 2020

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MALAYSIA - BANKING - Press Statement : Financial Sector Blueprint 2011 - 2020

Bank Negara Malaysia today released the new Financial Sector Blueprint. Themed "Strengthening Our Future", the Blueprint charts the future direction of the financial system over the next ten years.

As the country transitions towards a high value-added and high-income economy, the role of the financial sector is envisioned to grow beyond its role as an enabler of growth to be a key driver and catalyst of economic growth. Towards this end, the aim is for the financial sector to be more competitive, dynamic, inclusive, diversified and integrated, with the ability to offer world class financial services, in terms of breadth, depth and quality to serve the needs of Malaysia. The growth of the financial system should be ultimately anchored to the growth in the real sector. Based on the rate of growth of the economy projected for the next decade, the financial sector is envisaged to expand to six times of GDP in 2020 from 4.3 times of GDP currently. Meanwhile, the contribution of the financial services sector to nominal GDP is expected to grow from 8.6% of nominal GDP to between 10 and 12% by 2020.   (source)

MALAYSIA - BANKING - Governor\'s Speech at the Launch of the Financial Sector Blueprint at Sasana Kijang : \"Strengthening Our Future\"

Speaker : Governor Dr. Zeti Akhtar Aziz Venue : Sasana Kijang, Kuala Lumpur Date : 21 December 2011 Language : English

It is my great honour to welcome you to Sasana Kijang for the launch of Bank Negara Malaysia's Financial Sector Blueprint. On behalf of Bank Negara Malaysia and the financial services industry, Yang Amat Berhormat Dato' Sri, I wish to express our appreciation to you for your presence here this afternoon to launch the Financial Sector Blueprint. This Blueprint marks a new phase in the development of the financial system. It focuses on new areas that will strengthen the competitiveness and efficiency of the financial sector and its potential role in facilitating our ongoing economic transformation and greater regional economic and financial integration and thus to enhance Malaysia's long term economic growth potential.  (source)

WORLD - GENERAL - ‘Islamic finance Industry too Parochial and insular’

Governors of central banks and monetary authorities of the Organization of Islamic Cooperation (OIC) member countries, meeting at Sasana Kijang in Kuala Lumpur in November under the aegis of the Statistical, Economic and Social Research and Training Centre for Islamic Countries (SESTRIC) and hosted by Bank Negara Malaysia (BNM), could be excused for being pre-occupied with matters pertaining to the euro zone sovereign debt crisis and its impact on member countries. (source)

MALAYSIA - SPEECH - Governor's Keynote Address at the Islamic Financial Intelligence Summit (IFIS) 2011- "The New Islamic Finance Landscape"

This speech refers to the IFSB-IDB Task Force of Islamic Finance and Global Financial Stability Report (April 2010) that can be accessed here. 

This decade has witnessed dramatic changes in the Islamic financial landscape. As a dynamic industry, Islamic finance is responding to the forces of change emanating from the changing requirements of the real economy, the changing pattern and pace of globalisation and the wide spread financial reforms being undertaken at both the international and national levels.  This transformation of the Islamic financial system is also taking place during the most challenging of times as the world enters the fifth year of the global financial crisis. A central aspect of the new Islamic financial landscape is also the increased focus on financial stability to enhance further its potential as a form of financial intermediation in an increasingly more challenging environment.  (source)

MALAYSIA - OPINION - Malaysia: Taking Islamic finance further

thailand-business-news.com - Malaysia’s Islamic finance sector is further consolidating its position as a market leader, moving to broaden its product range and expand its reach, though it may need to keep an eye on rivals aspiring to emulate its success.

At a recent seminar on Islamic finance held in Istanbul, Mehmet Asutay, the director of the Durham Centre for Islamic Economics and Finance at UK-based Durham University, said Malaysia was positioning itself to capture 25% of the market share in the Islamic banking and finance sectors by 2012. (source)

INDONESIA - EVENTS - conference on Islamic Finance entitled “Enhancing Financial Linkages towards Economic Prosperity” to be held in Jakarta, Indonesia on18 July 2011

Bank Negara Malaysia and Bank Indonesia
Joint Conference on Islamic Finance, 18-19 July 2011, Jakarta

Bank Negara Malaysia (BNM) and Bank Indonesia (BI) is organising a joint conference on Islamic Finance entitled “Enhancing Financial Linkages towards Economic Prosperity” to be held in Jakarta, Indonesia on18 July 2011 at Shangri-La Hotel. HRH Raja Nazrin Shah, the MIFC Financial Ambassador; Dr. Zeti Akhtar Aziz, Governor, BNM; Darmin Nasution, Governor, BI and industry leaders in the financial sectors of both countries will be speaking at the event. The conference acts as a discussion platform to explore opportunities to further enhance two-way investments between Indonesia and Malaysia; and towards strengthening linkages between its Islamic financial markets.

In conjunction with the conference, three workshops will take place on 19 July 2011. These workshops discuss opportunities for strengthening cross-border liquidity management, product development and innovation; and creating an enabling environment for Islamic finance.

To download the event agenda, click Here

To download the registration form, click Here
Deadline for registration is Thursday, 14 July 2011

REGULATIONS - BNMalaysia consults market on Shariah parameter for Istisna contracts

By MUSHTAK PARKER | ARAB NEWS

Published: Jan 3, 2011 00:42 Updated: Jan 3, 2011 00:42 

Bank Negara Malaysia (BNM), the central bank, last week published the draft of its latest Shariah consultation on Islamic financial products, the "Concept Paper of Shariah Parameter Reference 5: Istisna Contract (SPR5)". According to BNM, SPR5 is aimed at becoming the true source of reference on the nature and features of the Istisna contract for the Islamic financial services industry and to facilitate the consistent implementation of the contract in the Malaysian financial market.

BANKING - MEGA BANK - Malaysia's central bank still reviewing Islamic mega bank bids

Malaysia's central bank said on Wednesday it was still reviewing offers to set up mega Islamic banks, suggesting it could miss its target of awarding a licence this year as the industry struggles to create a well-capitalised sharia lender.

Bank Negara Malaysia is offering up to two new Islamic banking licences to foreign firms to set up banks with at least $1 billion of paid-up capital, a move that the industry hopes will spur more lending and create bigger Islamic banks that can compete with global lenders.

FINANCE - IILM - BNM’s Islamic liquidity plan

KUALA LUMPUR: Bank Negara Malaysia (BNM)’s International Islamic Liquidity Management Corp (IILM) will issue short-term papers as part of efforts to enhance cross-border flows.

According to BNM governor Tan Sri Dr Zeti Akhtar Aziz, the short-term papers will be issued in international reserve currencies, such as the US dollar and the euro.

LAW - SHARIAH - CONTRACTS - Malaysia sets up committee to enhance its legal framework as `The laws of choice' for Islamic finance transactions

IN a move to position and strengthen its existing legal framework as ‘the Laws of Choice’ for Islamic financial transactions, Bank Negara Malaysia, the central bank, last week established a Law Harmonization Committee (LHC) comprising members from among key government stakeholders, including the Attorney General's Chambers as well as industry players and experienced Islamic finance legal practitioners.