Recommend Us | About Us | Back to

News | Financial Calculator | Home Financing | Archived News |


  Welcome to Bernama Banking & Finance Special Page     
Islamic Finance set to extend growth, says Moody's
Last update: 14/03/2018

KUALA LUMPUR, March 14 (Bernama) --†The growth of the Islamic finance sector will continue to outstrip that of†conventional assets across core Islamic finance markets in coming years, as demand for Shari'ah-compliant†financial instruments rises, said†Moody's Investors Service(Moody's).

In a statement today, the rating agency said Islamic banking penetration in the Gulf Cooperation Council (GCC) increased to 45 per cent†of the total banking†market, as of September 2017 from 31 per cent†in 2008.

Vice President/Senior Analyst at Moody's,†Nitish Bhojnagarwala, said the Islamic finance sector would† be supported by governments, whose objective is to grow the Islamic finance†industry both domestically and globally, as well as by continued demand for Islamic products from individuals.

"Islamic insurers' penetration into†Southeast Asia and North Africa will also drive growth in the industry," he said.

Sukuk issuances grew 17 per cent†in 2017 to $100 billion, driven largely by GCC sovereigns.

Bhojnagarwala†said Moody's expects a†similar level of issuance in 2018, although the recent recovery in oil prices could lower financing needs for†some sovereigns.

Corporate and asset-backed sukuk activity was muted in 2017 because of more attractive†conventional market opportunities and Moody's expects the same for 2018.

"The takaful sector continues to benefit from strong growth. The market attracted gross premium contributions†of US$14.9 billion in 2015 and we estimate it attracted over US$20 billion in 2017.

"We expect this growth†momentum to continue in 2018 and over the medium term, spurred by strong growth prospects in Southeast†Asia and North Africa," Bhojnagarwala†said.





US 4.0800/0850
S'pore 2.9770/9811
100 Yen 3.6523/6574
Sterling 5.3064/3146
Euro 4.7222/7292
Source: Bank Negara Malaysia

Starting April the banks have imposed a 50 sen processing fee on top of the 15 sen stamp duty on each cheque. The fee also applies to those applying for a Bankerís Cheque, Bank Draft and Cashierís Order. Do you think this additional charge is justified?

  Main | News | Insurance

© 2019 BERNAMA. All Rights Reserved. Disclaimer | Privacy Policy| Security Policy
This material may not be published, broadcast, rewritten or redistributed in any form except with the prior written permission of BERNAMA.
Best viewed in Firefox 8.0 & Internet Explorer 8.0 with 1024 x 768 resolution