KUALA LUMPUR (Bernama) – The Islamic financial system is envisaged to play a more important role in connecting the world economies through the strengthening of financial linkages, said Bank Negara Malaysia (BNM) Governor, Tan Sri Dr Zeti Akhtar Aziz.
She said Islamic finance brought immense benefits to the overall economy as it was a form of financial intermediation that was well-anchored to the real economy.
Its internationalisation, that started at the turn of the millennium, served to enhance and strengthen the interlinkages between economies, facilitating international trade and cross border investment activities, said Zeti.
“This trend has marked the beginning of intensified collective efforts to enhance the Islamic financial infrastructure to create a robust and resilient global Islamic financial system,” she said.
Zeti said this in her acceptance speech for the Lifetime Achievement Award at Islamic Economy Award 2014 in Dubai yesterday.
She said internationalisation required collective efforts to establish the international Islamic financial architecture and the development of mechanisms for more effective cross-border liquidity management.
“Our collective efforts in developing Islamic finance will provide an important platform to unlock the potential opportunities that lie therein to benefit every segment of the society and the business community that now extends beyond our domestic borders,” she said.
Central to achieving this next thrust of development was to develop a high calibre and competent talent base to cultivate financial innovation and this required investments in human capital, she said.