Tuesday, October 26, 2010

BNM ruling on Islamic financial products

KUALA LUMPUR, Oct 26 (Bernama) -- All new Islamic financial products to be offered by Islamic financial institutions or any existing products to be offered to new customers must comply with the rulings of the new Syariah Resolutions in Islamic Finance (Second Edition), said Bank Negara Malaysia (BNM).

However, for Islamic financial products which had been contracted between the customers and Islamic financial institutions based on syariah rulings published in the first edition and the Summary of National Syariah Advisory Council (NSAC) decisions, the contract would remain in force until maturity, BNM said in a statement here today. The second edition is a compilation of all syariah resolutions made between 1997 and 2009, it said.

BNM said the move was also a continuation of all its earlier efforts to deepen the understanding on the syariah interpretations and the juristic reasoning for the rulings.

"It is also aimed to increase the level of transparency on juristic reasoning in Islamic finance and thus, an increased appreciation and acceptance of syariah decisions," it said. The central bank said it would also allow for more efficient syariah governance at institutional level, while catalysing greater cross-border harmonisation in the interpretation and application of syariah. -- BERNAMAAny source

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