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The Monetary Authority of Singapore (MAS) has issued new banking regulations to clarify its policy on Islamic banking by explaining the regulatory treatment of specific Islamic structures.
Specifically, the regulations refer to Singapore-based banks who want to enter into Istisna or project finance transactions.
Istisna financing is typically applied to infrastructure development projects, an area that is of significant growth potential in a rapidly developing Asia.
MAS Executive Director Tai Boon Leong announced these changes at the Singapore Islamic Finance News Roadshow on Tuesday.
Mr Tai says in providing such financing for their customer's specified made-to-order projects, banks must ensure that they manage their risks prudently and have effective risk mitigation measures in place.
With the issuance of the Istisna regulations, the MAS has extended Islamic finance into the field of participatory finance for economic projects.
Mr Tai added that MAS has also largely completed its review of the main Islamic structures commonly used by the industry.
More details can be found on the MAS website. - CNA/fa
Specifically, the regulations refer to Singapore-based banks who want to enter into Istisna or project finance transactions.
Istisna financing is typically applied to infrastructure development projects, an area that is of significant growth potential in a rapidly developing Asia.
MAS Executive Director Tai Boon Leong announced these changes at the Singapore Islamic Finance News Roadshow on Tuesday.
Mr Tai says in providing such financing for their customer's specified made-to-order projects, banks must ensure that they manage their risks prudently and have effective risk mitigation measures in place.
With the issuance of the Istisna regulations, the MAS has extended Islamic finance into the field of participatory finance for economic projects.
Mr Tai added that MAS has also largely completed its review of the main Islamic structures commonly used by the industry.
More details can be found on the MAS website. - CNA/fa
