null Guidelines and Policies for Islamic Banking
Guidelines and Policies for Islamic Banking
14 Jun 2013 | Friday
International Islamic Banks (IIB) are licensed under the Islamic Banking Act 1983 (IBA). Under the IBA, qualified foreign and Malaysian financial institutions are allowed to conduct Islamic banking business in international currencies other than Malaysian ringgit.
- Well established and reputable licensed financial institution
- Adopt international banking practices formulated by the Bank for International Settlements or any other international standard-setting body(ies)
- Regulated and supervised by a competent home regulatory authority
- Possesses a sound track record.
Capital Requirements and License Fee
An IIB may be established as an incorporated company or branch.
To operate as an incorporated entity, the requirements are:
· A minimum paid-up capital of RM10 million
· An annual license fee amounting to RM50,000
To operate as a branch entity, the requirements are:
- A minimum net working fund of RM10 million
- An annual license fee amounting to RM50,000
Scope of Business
An IIB may conduct the full spectrum of Islamic banking operations in foreign currency. These include:
- Commercial banking, including bancatakaful (bancassurance)
- Investment banking
- Other banking businesses in Malaysia, as may be specified by Bank Negara Malaysia (the Central Bank of Malaysia)
For detailed information on the establishment of an IIB, please refer to the Guidelines on International Islamic Banking. Click here to download the Guideline on International Islamic Banking.
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