The Board is an Important Step to Institutionalizing Islamic Banking Operations

Rusd Investment Bank, through its Chairman Dr. Saleh Malaikah, participated in the Islamic Financial Service Conference that was recently held at Doha, Qatar. On this occasion, Dr. Malaikah made the following statement to Al-Sharq newspaper of Qatar

The conference is one of the fruits of the success of Islamic Financial Services Board that was established in Malaysia about three years ago. He declared that it is an important step to institutionalization of the Islamic banking operations, drawing in central banks in shaping the growth of Islamic banks.

Malaikah added that this conference, which is sponsored by Qatar Central Bank, has taken the role of an authority for the management of Islamic banks, which is a necessity not only at the global level in line with what has been achieved by international conventional banking, but also because Islamic Banks have an additional dimension which is that investors are not merely depositors but are equity holders in the assets of Islamic banks and from this stems the significance of the conference.

Malaikah pointed out that the most important challenge facing Islamic banks is to devise legal and organizational frameworks at a high global standard. He said that there is significant progress in this respect and increasing acceptance of such frameworks in Islamic countries and that a large number of Islamic states that laws governing the operations of Islamic banks. However, there is still a large number of foreign countries that have yet to legalize the operations of Islamic banks. In addition, it is necessary to legalize operations of Islamic banks in Western countries where Moslem communities reside.

With regard to traditional banks tendency to launch Islamic banking services, Malaikah said such approach is excellent and helps to institutionalize the industry and broaden the client base which serves the Islamic banking industry.

The Chairman of Rusd Investment Bank predicted that this conference will come up with useful recommendations for the exchange of views will contribute to consolidation of opinions that benefit Islamic banking