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EPICENTRE June 2022: Two Islamic digital bank licences approved and Malaysia Islamic Overnight Rate introduced
Newsletter
EPICENTRE June 2022: Two Islamic digital bank licences approved and Malaysia Islamic Overnight Rate introduced
Two Islamic digital bank licences approved and Malaysia Islamic Overnight Rate introduced
Bank Negara Malaysia (BNM) has recently announced the five successful applicants for the digital bank licences of which two applicants are to be licensed under the Islamic Financial Services Act 2013. The digital banks are expected to further advance financial inclusion.
Download the infographic below for more information on digital banking in Malaysia
As an effort to further develop the Islamic finance industry, BNM also announced the launch of Malaysia Islamic Overnight Rate (MYOR-i), the first transaction-based Islamic benchmark rate in the world. MYOR-i aims to spur the development of innovative Shariah-compliant financial products which will further deepen Malaysia’s Islamic financial market. It will also reinforce a holistic Shariah-compliant ecosystem and enhance best market practices and standards.
In another development, the MIFC portal has a new look with enhanced features - i.e. MIFC Forum as a platform for industry discussion on Islamic finance, updated content and more vibrant interface. Explore the portal and share your experience with us via the survey (link below) and let us know how we can improve further. Visit MIFC portal Register an account for MIFC Forum Participate in MIFC portal user experience survey
BNM announced the five successful applicants for the digital bank licences as approved by the Minister of Finance Malaysia with two applicants are to be licensed under the Islamic Financial Services Act 2013.
BNM announced the launch of Malaysia Islamic Overnight Rate (MYOR-i) which aims to spur the development of innovative Shariah-compliant financial products which will further deepen Malaysia’s Islamic financial market.
The Islamic financing reached 42.5% of total loans/financing while takaful net contribution recorded 20.6% of total net premium/net contribution according to BNM's Annual Report 2021.
Malaysia continues to remain in the top spot in the overall rankings for the ninth consecutive year of the State of the Global Islamic Economy Report 2022 and ranked first in four out of six sectors.
Malaysia's takaful industry penetration rate rose to 18.6% last year from 16.9% recorded in 2020 and the landmark increase was the highest growth over a five-year period.
The Value-based Intermediation Financing and Investment Impact Assessment Framework (VBIAF) Sectoral Guide Working Group issued the second cohort of the VBIAF Sectoral Guides on Oil & Gas, Manufacturing and Construction & Infrastructure which provide an in-depth impact-based risk management toolkit for financial institutions to implement VBIAF at a more granular and transactional level.
Malaysia's Islamic banking sector remains on a positive trajectory with ample room for growth with the banks’ strong balance sheets that enable them to continue expanding as the government further develops the sector.
The size of the Islamic capital market increased to RM2.31 trillion as at end-2021 from RM2.26 trillion as at end-2020 which comprised a total market capitalisation of Shariah-compliant securities of RM1.2 trillion and total sukuk outstanding amounting to RM1.1 trillion.
Halal Development Corporation Bhd (HDC), in collaboration with Yayasan Wakaf Malaysia and selected banks, will introduce a waqf fund to assist MSMEs in developing the halal economy in the country.
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