According to Zawya Dow Jones, Asia accounted for more than half of all Islamic bond (sukuk) issuance in 2009, with $11.74bn issued from the region and $20.41bn globally. Further, Malaysia is recognised as Asia’s major Islamic finance hub but most of its sharia banking business is conducted in the local ringgit currency.
BNM intends to encourage more foreign investment and plans to award two new Islamic banking licences to foreign firms to set up banks with paid-up capital of at least $1bn.
Reportedly, the license is the third to be awarded by the Malaysia Islamic Finance Centre. It will provide Deutsche Bank a platform to offer Islamic commercial and investment banking services denominated in foreign currencies to institutional clients throughout Asia.
Deutsche Bank is said to be worked with a panel of Islamic scholars to ensure strict compliance of its products with Shari’ah principles.
Raymond Yeoh, chief country officer of Deutsche Bank (Malaysia), said: “Deutsche Bank has a proven track record of innovation in wholesale Islamic finance. Our Islamic banking licence will make this innovation more easily available to clients in Asia while contributing to Malaysia’s position as an international Islamic finance centre.”
Jamzidi Khalid, CEO of international Islamic banking and head of Islamic structuring for Asia ex-Japan at Deutsche Bank, said: “The licence will help make conventional products and services more accessible to clients with Shari’ah-compliant financial needs.”
