Hong Kong Monetary Authority and Bank Negara Malaysia Agreed to Advance Islamic finance

The Hong Kong Monetary Authority and Bank Negara Malaysia signed a Memorandum of Understanding on co-operation in the development of the financial services industry, particularly in the area of Islamic finance.
Under the memorandum, both parties agreed to further strengthen co-operation in a number of key areas including:
– capacity building and human capital development;
– facilitating and promoting the development of an effective financial market infrastructure through the exchange of information and experience in developing legal, regulatory and supervisory frameworks for Islamic finance;
– promoting cross-border financial activities through exploring harmonisation of standards and documentation relating to Islamic finance transactions and promoting the consistent application of Islamic financial contracts for cross-border transactions.
Commenting on the agreement, Mr. Joseph Yam, Chief Executive of the The Hong Kong Monetary Authority, said: “The signing of this Memorandum marks the beginning of a new area of co-operation between the HKMA and BNM.
“It reflects our joint commitment to further developing the Islamic finance industry and paves the way for future initiatives that will benefit both Malaysia and Hong Kong”.
Dr. Zeti Akhtar Aziz, Governor of the BNM, added: “This effort which extends the co-operation in the area of Islamic finance will provide further opportunities for increased economic and financial flows between Hong Kong and Malaysia”.

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