Safe Finance For Difficult Times

In mid-January 2009 the monetary authority of Singapore (MAS) has launched its first SGD denominated Sukuk (bonds, which are applicable to the requirements of Shariah law) of the program. With this program aims to promote Islamic banking and MAS to ensure that the city can continue to mature into a significant hub of Islamic finance in Asia. Pole position in this sector in the region is currently held by Kuala Lumpy.

Issuance of Sukkot by MAS is significant progress in the development of Islamic banking market in Singapore, because the Islamic banks provide access to the local currency liquidity, which is currently absent. This allows the banks to provide Shariah compliant, local currency products and solutions. With MAS using the highest rating by the Government of Singapore, an important element in Singapore's arsenal of Islamic banks has been met.

New Sukkot is important for another reason. This shows that the regional authorities are becoming pro-active in the identification of and access to alternative sources of funding. This is undoubtedly the result of very tight credit markets in the world, an unwanted side effect of governments around the world is trying to borrow their way out of the global credit crunch.

What is also remarkable is that Poland once again trumped the important Hong Kong in the field of finance. Chief Executive Donald Tsang of the Hong Kong government's intention to promote the territory as a potential hub of Islamic finance in his policy address in 2007. Since then, the government has done little to correct this, I hesitate to use that word, I see in practice. Check the city you will find many senior banker frustrated in their intentions for Islamic banking from the ground through lack of major government initiatives.

Despite this, the original deadline for the Chief Executive was the perfect statement. It was made in times of rising prices of oil, provided the main applicants of Islamic finance in the Arab world's rich cash flow to fund new ventures of Islamic banking, as well as driving growth in Islamic finance industry. At the time, Hong Kong made every effort to use this ideal scenario. No.

Although the loss of Hong Kong, although very important, I believe the opportunity that's not too late to position Hong Kong as Asia's Islamic finance hub. Paralysis of the traditional banking system, opened the door to another bite at cherry.

Let me explain. The basic principle that the basis for Islamic finance is that risk-sharing. Risk should be shared between the lender and the borrower. Therefore, the lender expects to take a greater interest in the success of the company. Muslims believe that it is unjust, and immoral for a lender to guarantee the repayment of capital plus interest, regardless of the outcome of the project. This makes it very prudent financial management. As an extension of this, there is a growing number of commentators who argue that the global financial system is subject to Islamic principles would significantly safer than the very fragile house of cards, we are subject.

Adoption of this financing system would require a significant leap forward, however, the faith of a number of sectors. Although Islamic finance comes from writing my religion of Islam treat it as something more than that. It is a socially responsible manner agreed to meet the financial needs of a society that goes beyond the religious aspects on which it is based.

In the financial gateway to China, Hong Kong now has the opportunity to lead the second wave in the development of Islamic finance in Asia. In addition to their home to the world's third largest Muslim community, China is in need of foreign investment and continue to cash-rich countries in the Islamic world are increasingly looking for Islamic investment opportunities in the Far East.

To this marriage made in heaven some decisive action is required under the authority of which, in addition to the industry to educate on what is involved in the banking system, which is based on Islamic principles, and how it can be used for the benefit of all involved parties. Some of the largest financial institutions in Hong Kong already have the necessary know-how. However, the industry in general, including accountants, bankers and lawyers have a lot of catching up to do.
Fast Weight Loss ||