Malaysia opens up IB market to foreign banks

Beginning in 2004 Bank Negara Malaysia will issue three Islamic banking licenses to foreign banks that are financially sound, regulated by strong and reputable national authority, and that will contribute to the development of Islamic finance and to overall economic growth in Malaysia. Proposals made by the prospective institutions should include source of capital, management structure, shareholder information, and a review of previous business ventures. This indicates that Bank Negara is confident that its own banks are strong enough to compete with foreign banks, and that the plan will further integration of its domestic banks with global institutions.