Japanese bank launches Shariah branch in Malaysia

SMBCJapan’s Sumitomo Mitsui Banking Corp (SMBC) will launch a fully Shariah-compliant Islamic finance operation in Malaysia, Japan’s Jiji Press reported on March 10. The core banking unit of Sumitomo Mitsui Financial Group Inc has obtained a licence for foreign currency-based Islamic finance services in the country, which promotes Islamic finance under a national policy, Jiji Press quoting informed sources as saying.

SMBC hopes to use a fully-owned local subsidiary as a key operational base for the whole of Southeast Asia, where fund demand is strong thanks to growth in the economy and population, the sources said.

The local subsidiary, Sumitomo Mitsui Banking Corp Malaysia Bhd, is starting financial services in US dollar and other currencies that are fully compliant with Shariah, which bans financial transactions involving interest payments and acceptance.

The Japanese bank group aims to find clients among local companies and Japanese firms participating in natural resources and infrastructure development projects, according to the sources.

Japanese banks are able to handle Islamic finance following a 2008 law revision. A British unit of SMBC in 2012 led the formation of a Shariah-compliant $750-million syndicated loan programme for an airport project in Saudi Arabia. SMBC will be the first Japanese bank to have an Islamic finance operational base both in Europe and Asia.



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Japan’s Sumitomo Mitsui Banking Corp (SMBC) will launch a fully Shariah-compliant Islamic finance operation in Malaysia, Japan’s Jiji Press reported on March 10. The core banking unit of Sumitomo Mitsui Financial Group Inc has obtained a licence for foreign currency-based Islamic finance services in the country, which promotes Islamic finance under a national policy, Jiji Press quoting informed sources as saying. SMBC hopes to use a fully-owned local subsidiary as a key operational base for the whole of Southeast Asia, where fund demand is strong thanks to growth in the economy and population, the sources said. The local subsidiary, Sumitomo...

SMBCJapan’s Sumitomo Mitsui Banking Corp (SMBC) will launch a fully Shariah-compliant Islamic finance operation in Malaysia, Japan’s Jiji Press reported on March 10. The core banking unit of Sumitomo Mitsui Financial Group Inc has obtained a licence for foreign currency-based Islamic finance services in the country, which promotes Islamic finance under a national policy, Jiji Press quoting informed sources as saying.

SMBC hopes to use a fully-owned local subsidiary as a key operational base for the whole of Southeast Asia, where fund demand is strong thanks to growth in the economy and population, the sources said.

The local subsidiary, Sumitomo Mitsui Banking Corp Malaysia Bhd, is starting financial services in US dollar and other currencies that are fully compliant with Shariah, which bans financial transactions involving interest payments and acceptance.

The Japanese bank group aims to find clients among local companies and Japanese firms participating in natural resources and infrastructure development projects, according to the sources.

Japanese banks are able to handle Islamic finance following a 2008 law revision. A British unit of SMBC in 2012 led the formation of a Shariah-compliant $750-million syndicated loan programme for an airport project in Saudi Arabia. SMBC will be the first Japanese bank to have an Islamic finance operational base both in Europe and Asia.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

$
Personal Info

Donation Total: $10.00

 

 

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