Tagged: FMT News

Reaching the masses with sukuk

Reaching the masses with sukuk

<p>Issues like rating requirements, cost of issuance and complexity of documentation meant that capital raising through sukuk is predominantly by larger corporations and entities. This means that sukuk offer no opportunity for direct investments by retail investors. In order to facilitate greater direct retail participation in the corporate bonds and sukuk market, the Securities Commission Malaysia in 2012 developed the framework for retail bonds and sukuk as envisaged under the Capital Market Masterplan 2, enabling retail investors&rsquo; access to a wider range of investment products. However, there are several challenges. One area that requires considerable effort is investor education. Although the new approach may not achieve overnight success, it will help widening access to the capital market and ensuring that Islamic finance takes the path of inclusiveness.</p>
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<p><a href="http://www.freemalaysiatoday.com/category/opinion/2013/07/08/reaching-the-masses-with-sukuk/" title="http://www.freemalaysiatoday.com/category/opinion/2013/07/08/reaching-the-masses-with-sukuk/">http://www.freemalaysiatoday.com/category/opinion/2013/07/08/reaching-th…</a></p>
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Gold as a currency in Islamic finance?

Gold as a currency in Islamic finance?

Many advocates of Islamic banking suggest using gold as a replacement for the money created through the interest rate mechanism. While Islamic banks could be allowed to use gold deposits (by way of selling gold for cash), they must return the depositors’ gold or keep it for safe custody. Furthermore, Islamic banks can not extend credit to their customers as they will not be able to use the depositors’ gold (by selling it for cash) to offer financing to those who may need it. This will, in turn, have implications for economic growth. It is important that the governments take a proactive role in implementing this proposal. As the government of Malaysia is developing tools for liquidity management for Islamic banks, gold dinar may not be an entirely abstruse concept.

Suspended Bank Islam economist a PKR member

Suspended Bank Islam economist a PKR member

Azrul Azwar Ahmad Tajuddin, Bank Islam’s recently suspended chief economist, is a member of the party PKR. However, PKR vice-president Mohd Azmin Ali said that Azrul’s party membership was irrelevant to his recent prediction that Pakatan Rakyat would win the 13th general election and that the analysis he gave is a professional opinion based on strong figures. However, Bank Islam released a statement yesterday saying the suspension was unrelated to Azrul’s personal political views.