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Singapore calls for Islamic finance improvements

Thursday 25 November 2010 - by Will Henley


The Monetary Authority of Singapore has called for stricter standards of risk management and corporate governance at Sharia-compliant financial institutions.

Ng Nam Sin, assistant managing director at the authority, told the 17th annual World Islamic Banking Conference in Bahrain on Wednesday that banks need to ensure that their businesses can be "sustainable in the long-term".

He said: "Most Shariah-compliant banks like conventional banks need to continue to improve their risk management and corporate governance standards.

"Asset-liability management, liquidity and risk concentrations are some of the key issues confronting financial institutions."

A shortage of financial professionals who are well-versed in Shariah-compliant products also needs to be addressed, Ng Nam Sin said.


"We need more universities and training institutes to offer better quality education and training in Islamic law and finance in order to meet the rising demands of the industry as it embarks on the next phase of growth."

The assistant managing director added that he saw potential for "closer cooperation" between the Middle East and Asia.

He said that it was encouraging that bodies such as the Islamic Development Bank, Accounting and Auditing Organisation for Islamic Financial Institutions and International Islamic Financial Market are active in trying to harmonise standards.



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