KUCHING: OSK Investment Bank Bhd’s (OSKIB) Islamic banking division is taking
measures to unlock value in the Islamic finance realm, in tandem with its
measures in addressing the challenges currently faced in the segment.
The World Bank has valued the global Islamic finance asset size at about
US$1.3 trillion currently and expects it to reach US$1.6 trillion by year-end.
In Malaysia, the Islamic banking segment represented 18 per cent of the overall
banking sector’s RM1.78 trillion total assets as at end-2011.
OSKIB’s Islamic banking division director and head Yazit Yusuff recently
told The Borneo Post that the measures included shifting of focus on business
development into more Islamic capital market activities.
“The bank has identified various initiatives including the setting up of a
full-fledged Islamic fund management company. There are also projects in the
pipeline including establishing an Islamic stock broking window and introducing
syariah-compliant equity derivative products.”
In addition, he mentioned “continuous sourcing for financing mandates
especially on opportunities to participate in syndicated Islamic financing
arrangements with other Islamic banks to finance capital market activities.”
With regards to collaboration and consolidation, he also noted the bank’s
greater potential via “benefitting from a bigger and stronger balance sheet
through the proposed merger initiative with RHB Investment Bank.”
“The new developments include establishing an Islamic stock broking window
to offer a full range of syariah-compliant equity businesses from a selection
of syariah-compliant stocks to provision of Islamic Share Margin Financing.”
In terms of new products, OSKIB had identified more new syariah-compliant
products such as syariah-compliant equity derivative products including
warrants, options and dual-currency investments as well as retail deposits in
the form of syariah-compliant negotiable instruments of deposits.
The fund management business would be looking at market expansion in which
syariah-compliant funds will be issued and marketed out of the regional offices
like Singapore and Hong Kong, he said.
“Kuala Lumpur is the hub for our Islamic fund management activities and all
products offered will take into account screening methodology used by other
jurisdictions to ensure global acceptance.
“In the current changing market, there is a wide range of Islamic banking
products offered by many financial institutions to meet the demands and needs
of investors in the Islamic capital market.
“OSKIB is dedicated to expand its current Islamic based products into a
full-fledged Islamic capital market offering through growing its capabilities
in product structuring, asset management, project financing, stock broking and
capital services that would be made available to current and future investors.
(Berneo Post Online / 22
Oct 2012)
---
Alfalah Consulting - Kuala Lumpur: www.alfalahconsulting.com
Islamic Investment Malaysia: www.islamic-invest-malaysia.com
No comments:
Post a Comment