Monday, November 05, 2012

Malaysia to host a mega Islamic bank (or several?)

Interesting news out of Malaysia with regards to a potential mega Islamic bank: 
Deputy Finance Minister Datuk Donald Lim Siong Chai said of the [more than 20 applications], 10 were local banks, six foreign banks registered in Malaysia, and five international banks.
The idea of a mega Islamic bank is not new; it has been floating around for many years (and there are probably a few Islamic banks operating already that meet this standard for 'mega Islamic bank).  However, the prospect of 21 institutions applying to receive a license to become mega Islamic banks does show that there is the potential for large Islamic banks in Malaysia.  The market has certainly developed to be large enough to support at least a few.  The Malaysian Investment Development Authority (MIDA) says there were total Islamic bank assets of 334.9 billion Ringgit ($109 billion) as of December 2011. 

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