The Malaysian Insider: Dr M supports Petronas backed mega Islamic Bank.
http://www.themalaysianinsider.com/malaysia/article/dr-m-supports-petronas-backed-mega-islamic-bank
When BNM announced in 2010 tht it would issue two licenses to create two mega banks, i.e.; with a paid-up capital of at least US$ 1 billion, the market expectation was that it would be foreign institutions given the sheer size of the exercise.
Why should we ask Petronas and KWAP for funds to create a mega Islamic bank?
After all, we have been given the impression that there have been a lot of interest, especially foreign, in the mega Islamic bank.
In light of past misuse and bailouts of public funds, (i.e. The Bank Bumiputera fiasco) and Najib’s economic transformation pledge, I remain against the use of public funds for such a private initiative. The establishment of this mega Islamic bank should be left to market forces.
The role of Government and regulators should just be to facilitate and not to be involved directly in creating the mega bank, especially when it involves both petronas and kwap funds.
Petronas and KWAP should have no business in running a bank. Any extra profits of Petronas should be reinvested in its core activities, not in setting up a bank of which Petronas has no expertise in.
The best would be to entice a group of financial institutions, foreign and/or local which really are passionate about Islamic finance to form a consortium to create the mega Islamic bank – such expertise in finance in general and commitment to further develop Islamic finance, will make the mega Islamic bank a successful venture, InsyaAllah.
The question is, have we been successful in convincing foreign financial institutions of the true potential of Islamic finance and how will the creation of a mega bank further help develop the global Islamic financial services industry?
For sure the creation of such a mega Islamic bank in Malaysia will certainly entrench our leadership position in becoming a global Islamic financial hub – but due diligence is required in this exercise to ensure its success in the long run.
Nurul Izzah Anwar
