Fitch has good outlook on Islamic banking in China
(20 September 2012 – China) Fitch Ratings believes Islamic banking will flourish in China and help attract capital inflows from the Middle East.
A report says Malaysia’s Bank Muamalat Malaysia Bhd and Bank of Shizuishan will open an Islamic bank in Ningxia Province within two years.
According to Mark Young, Fitch Ratings' managing director, Head Asian Pacific Financial Institution, Islamic products/services in countries with mainstream conventional banking are complementary in nature and often serve to complete the suite of offerings in order to cater to different demands of the customers.
He said that Singapore, Hong Kong and possibly China fall in that category as banks in these countries look to offer complementary products to a segment which may have specific requirements for such services.
'It may also help attract some capital inflows from traditionally wealthy Islamic investors from the Middle East who may be somewhat reluctant to be as active in Western markets as has the case been in the past,' Young said.
According to Mark Young, Fitch Ratings' managing director, Head Asian Pacific Financial Institution, Islamic products/services in countries with mainstream conventional banking are complementary in nature and often serve to complete the suite of offerings in order to cater to different demands of the customers.
He said that Singapore, Hong Kong and possibly China fall in that category as banks in these countries look to offer complementary products to a segment which may have specific requirements for such services.
'It may also help attract some capital inflows from traditionally wealthy Islamic investors from the Middle East who may be somewhat reluctant to be as active in Western markets as has the case been in the past,' Young said.
Subscribe