OIC - COOPERATION ISLAMIC CAPITAL MARKETS - Memorandum of Understanding between Bank Negara Malaysia and Central Bank of the Republic of Turkey

www.bnm.gov.my - A Memorandum of Understanding (MoU) has been signed between Bank Negara Malaysia and the Central Bank of the Republic of Turkey on 16 May 2012 in Istanbul, Turkey by Dr. Zeti Akhtar Aziz, Governor of the Bank Negara Malaysia and Dr. Erdem Başçı, Governor of the Central Bank of the Republic of Turkey.

The MoU aims to foster strategic cooperation between Malaysia and the Republic of Turkey towards promoting bilateral investment and liquidity arrangements, to support the development of the financial services sector in both countries, and to enhance economic and financial linkages between the two countries through bilateral trade and investment. This will also include building the required financial infrastructure, payments and settlements arrangements to facilitate bilateral trade in the respective local currencies of the two countries. (source)

EVENTS - IFSB SUMMIT ISTANBUL - Invitation to the Malaysia Country Showcase & Business Roundtables 15 May 2012, Istanbul, Turkey

Programme MCS - Foreign

EVENTS - IFSB SUMMIT ISTANBUL - Invitation to the Malaysia Country Showcase & Business Roundtables 15 May 2012, Istanbul, Turkey

MIFC Business Roundtables_revised

EVENTS - IFSB SUMMIT ISTANBUL - Invitation to the Malaysia Country Showcase & Business Roundtables 15 May 2012, Istanbul, Turkey

Invitation to the Malaysia Country Showcase

& Business Roundtables

15 May 2012, Istanbul, Turkey

Bank Negara Malaysia (the Central Bank of Malaysia) will be organizing the Malaysia Country Showcase (Showcase) on 15 May 2012 at Swissotel The Bosphorus, Istanbul, Turkey. The Showcase is held in conjunction with the 9 th Islamic Financial Services Board Summit and organised in support of the Malaysia International Islamic Financial Centre (MIFC) initiative.

Themed “Promoting greater financial and economic linkages in Islamic finance”, the Showcase business panel session will discuss current issues and developments in global Islamic finance. Approximately 150 participants
comprising leaders of the financial and business communities are expected to attend the Showcase.

In addition to the Showcase event, three parallel Business Roundtable sessions will be organized separately by the Securities Commission of Malaysia, the Association of Islamic Banking Institutions Malaysia and the
Bond Pricing Agency Malaysia. The objectives of the Roundtables are to further enhance collaboration and linkages between Malaysia and other global economies, in particular Turkey, and to highlight the Malaysian
financial community’s capabilities in offering Islamic financial products and services to the global community.

In this regard, Bank Negara Malaysia is pleased to invite you and your representative(s) to participate in the Showcase and Business Roundtables. You may also wish to invite your clients and representatives from your
group entities to participate in our event. We would appreciate if your good office could confirm your participation and other representatives in the Showcase to

Mr. Noor Fikri Mohd Fadhil at +603 9179 2236/ fikri@bnm.gov.my or
Ms Norhasmiza Haimid at +603 9179 2226/ norhasmi@bnm.gov.my

by 18 April 2012, providing name, designation, telephone and email address.

For participation to attend the Business Roundtables, please contact the relevant officers as stated in the respective programmes. Attached, the programmes for the Malaysia Country Showcase and Business Roundtables for your reference.

Thank you and regards,

MIFC Promotions Unit
Bank Negara Malaysia
Kuala Lumpur, Malaysia

BANKING - Turkey capitalizes on participation banking ties

Perhaps it is not surprising that the 9th Annual Summit of the Islamic Financial Services Board (IFSB) will be hosted by the Central Bank of Turkey (CBT) on May 16-17, 2012 in Istanbul. At the meeting of the central banks & monetary authorities of the OIC member countries which was organized by the Ankara-based SESTRIC, the statistical and research organization of the OIC, and hosted by Bank Negara Malaysia, the central bank, in Kuala Lumpur last week, Erdem Basçı, governor of the CBT, was indeed a busy man. (source)

EVENTS - MIFC Newsletter - MIFC Business Seminar on Islamic finance in Istanbul

Tun Dr. Mahathir Projects Sustainable Future for Islamic Finance at MIFC Business Seminar on Islamic Finance in Istanbul

Tun Dr. Mahathir Mohamad, former Malaysian Prime Minister, has urged countries to resort more to using Islamic finance in the aftermath of the global financial crisis and stressed that the industry is here to stay and definitely has a future in the global financial system. Tun Dr. Mahathir was giving a Special Address on the theme "The Future of Islamic Finance - Creating Global Linkages and Connectivity to the Growth Real Economy to Promote Financial Stability, Economic Growth, Employment and Prosperity" at the opening session of the Business Seminar on Islamic Finance which was organised by Bank Negara Malaysia in support of the Malaysia International Islamic Financial Centre (MIFC) initiative from 28 to 29 September 2011 in Istanbul, Turkey. The Seminar was attended by H.E. Saipul Anuar Bin Abd Muin, Malaysian Ambassador to Turkey; Bank Negara Malaysia (BNM) Deputy Governor Muhammad bin Ibrahim; Dr Mustafa Ibrahim Turhan, and Dr Turalay Kenc, Deputy Governors of the Central Bank of Turkey; Yasar Yakis, former Foreign Minister of Turkey; senior representatives from the Securities Commission Malaysia, Labuan FSA and Bursa Malaysia; and of the Turkish Treasury, the Banking Regulation and Supervision Board of Turkey, Capital Markets Board of Turkey and the Istanbul Stock Exchange. Other participants included MIFC Community members and Turkish participation banks, corporates and academia. (source and full story)

EVENTS - Make Turkey Gateway To New Export Markets, Says Dr M

BERNAMA.COM - KUALA LUMPUR, Oct 4 (Bernama) -- Malaysia should consider Turkey as its gateway to new lucrative export markets, says former Prime Minister Tun Dr Mahathir Mohamad.

At the same time, Dr Mahathir said Malaysia should consider reducing its dependency on the US and EU export markets as economic crisis at home had affected both the US and EU's purchasing power. (source)

EVENTS - The Future of Islamic Finance "Creating Global Linkages and Connectivity to the Growth Real Economy to Promote Financial Stability Economic Growth, Employment and Prosperity" by Tun Mahathir bin Mohamad in Istanbul, Turkey

SPEECH BY
TUN DR MAHATHIR BIN MOHAMAD
IN ISTANBUL, TURKEY
0N 29 SEPTEMBER 2011THE FUTURE OF ISLAMIC FINANCE
“CREATING GLOBAL LINKAGES AND CONNECTIVITY TO THE REAL ECONOMY TO PROMOTE FINANCIAL STABILITY ECONOMIC GROWTH EMPLOYMENT AND PROSPERITY”

1. I would like to say thank you to the Malaysian central bank or Bank Negara Malaysia for this invitation to speak before this distinguished gathering of financial experts and others.  (source)

EVENTS - Deputy Governor's Opening Remarks at Business Seminar on Islamic Finance Istanbul : "Malaysia-Turkey Islamic Finance Cooperation: New Solution - Preferred Partner"

BNM.GOV.MY

Speaker : Dato' Muhammad bin Ibrahim Venue : Turkey Date : 29 September 2011 Language : English

I have the honour today to welcome distinguished guests to the Business Seminar organised by Bank Negara Malaysia, held in this beautiful and historic city of Istanbul. The theme "Malaysia and Turkey: The New Silk Route in Islamic Finance - Strategies for Collaboration, Cooperation and Smart Partnership" was chosen as a reflection of our desire to strengthen economic and business ties for the mutual benefits of both countries. The emergence of the 'Silk Route', a term coined by Governor Dr Zeti in 2006 opens up exciting prospects for countries and businesses. The new 'Silk Route' not only carries traditional trade of goods and services of old but also manufactured goods, technological innovation and know-how, portfolio flows, private equity investment and mobility of human capital and knowledge. Today, Islamic financial products and services are truly 'new' additions to this trade.  (source)

EVENTS - Islamic Banking Prevents Greed, Abuses, Says Dr Mahathir

BERNAMA.COM - KUALA LUMPUR, Sept 30 (Bernama) -- More countries may resort to Islamic banking systems and principles in order to prevent greed and abuses from taking over, says former Prime Minister Tun Dr Mahathir Mohamad.

He said Islamic banking should stay free from gambling and speculation, from the invention of financial products, and unlimited freedom to create money and leveraging, which had all contributed to the downfall of the riba-based financial system.  (source)

EVENTS - Bank Negara Malaysia held Islamic Finance Seminar with Turkish Financial Community

BNM.GOV.MY - Bank Negara Malaysia recently held a seminar on Islamic Finance in Istanbul, Turkey, in support of the Malaysia International Islamic Financial Centre (MIFC) initiative. Tun Dr Mahathir Mohamad, former Prime Minister of Malaysia delivered his Special Keynote Address at the event. The seminar was held from 28-29 September 2011. (source)

EVENTS - Bank Negara Malaysia - Business Seminar on Islamic Finance, 28-29 September 2011 Istanbul, Turkey

Bank Negara Malaysia (BNM) will be organising a business seminar at The Ritz Carlton in Istanbul, Turkey, from 28th to 29th September 2011. This business seminar is aimed at creating greater linkages between Malaysia and Turkey in the area of Islamic finance and increasing the level of business and financial transactions between the two countries. The main draw of the event is the Business Seminar on Islamic Finance on 29th September 2011 that will feature a special address by His Excellency Tun Dr. Mahathir Mohamad, Former Prime Minister of Malaysia. (source)

ARTICLE - The Behavior of Conventional and Islamic Bank Deposit Returns in Malaysia and Turkey

Author/Editor: Cevik, Serhan ; Charap, Joshua

Authorized for Distribution: July 01, 2011

Summary: This paper examines the empirical behavior of conventional bank deposit rates and the rate of return on retail Islamic profit-and-loss sharing (PLS) investment accounts in Malaysia and Turkey, using monthly data from January 1997 to August 2010. The analysis shows that conventional bank deposit rates and PLS returns exhibit long-run cointegration and the time-varying volatility of conventional bank deposit rates and PLS returns is correlated and is statistically significant. The pairwise and multivariate causality tests show that conventional bank deposit rates Granger cause returns on PLS accounts. These findings have policy implications in terms of price stability and financial stability.

Access here. 

BANKING - Plan To Issue Mega Islamic Bank Licences Still In Progress

KUALA LUMPUR, March 8 (Bernama) -- Bank Negara Malaysia's (BNM) plan to issue up to two mega Islamic bank licences is still on progress, says its deputy governor, Datuk Mohd Razif Abdul Kadir.

"The plan is still in progress. We need to find the right investors," he said, when asked on progress of the plan to issue mega Islamic bank licences. (source)

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 - Liquidity management - Islamic finance boost via IILM: Zeti

The establishment of the International Islamic Liquidity Management Corp (IILM) will further enhance the capacity of Islamic finance in facilitating efficient cross-border flows, Bank Negara Malaysia (BNM) Governor, Tan Sri Dr Zeti Akhtar Aziz, said today.

FINANCE - Malaysia To Take Lead In Establishing Supra-Sovereign Wealth Fund

KUALA LUMPUR, Oct 23 (Bernama) -- Malaysia will take the lead in facilitating the establishment of the Supra-Sovereign Wealth Fund (SSWF) in its bid to attract large amounts of sovereign wealth funds from prosperous Islamic countries.

PUBLICATONS - SPEECH - BIS - Muhammad bin Ibrahim: Financial services industry – opportunities and challenges for Asia and Europe

Speech by Mr Muhammad bin Ibrahim, Deputy Governor of the Central Bank of Malaysia, at the 12th Asia-Europe Business Forum: “The Potential Role of Islamic Finance in Contributing to Global Financial Stability”, Brussels, 4 October 2010.

* * *

I am honoured to be invited to speak at this Asia-Europe Business Forum themed “Financial Services Industry: Opportunities and Challenges for Asia and Europe”. During a time of global economic challenge and uncertainty, following the recent unprecedented global financial and economic crisis, it is timely for this forum to take place as a platform for business leaders and policymakers across Asia and Europe to reflect on the challenges and to discuss on solutions that can contribute to restoration of global financial stability.

CAPITAL MARKETS - RAM Islamic bullish on Malaysia sukuk market

THE country's sukuk market is likely to be favourable this year with RM261.1 billion sukuk outstanding in the first half, up from RM248.7 billion as end of 2009.

From January till May this year, total new corporate sukuk approved by the Securities Commission stood at RM970 million.

Local rating agency RAM Ratings sees promising sukuk market this year, with government-related infrastructure projects and banks' capital-raising exercises to remain the bulk of the domestic debt capital market's activity.