Islamic finance - Risk.net

Christopher Jeffery
01 Mar 2011

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Malaysia has spearheaded the development of sharia-compliant financial services in Asia, with the government giving its full support to the development of Islamic finance for more than two decades. One of its latest efforts is designed to help banks with their funding operations by supporting the use of commodity murabaha underpinned by the country’s rich supplies of palm oil.

As our article on pages I2-5 explains, while deposits will likely remain a favoured liquidity tool for Islamic and

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