BNM's Zeti calls on Islamic finance to show leadership out of the crisis

The "challenging environment" facing financial services following the crisis of the past few years provides "clear potential for Islamic financial players to demonstrate leadership by capitalising on core value propositions of Islamic financial intermediation", according to the governor of Bank Negara Malaysia, Zeti Akhtar Aziz.

Speaking on the occasion of the 10th anniversary of the Islamic Financial Services Board (IFSB) – the "international prudential standard-setting body for the Islamic finance", according to Zeti – she said that "in the wake of the global financial crisis, there is consensus on the need for a return to financial systems that serve the real economy, and the demands for more responsible financial practices from the financial sector, which also includes the commitment to achieve socio-economic goals".

In this more challenging environment, Zeti said, "the success of sustaining the momentum of Islamic finance as a transformative agent for the economy, will hinge on the ability to keep raising the bar in the pursuit of an effective functioning and sound Islamic financial system."