BNM, HKMA sign MoU on cooperation

Written by The Edge Financial DCaily
Monday, 28 September 2009 22:08

KUALA LUMPUR: Bank Negara Malaysia (BNM) and the Hong Kong Monetary Authority (HKMA) have signed a memorandum of understanding (MoU) on cooperation in the development of the financial services industry, particularly in the area of Islamic finance.

In a joint statement on Sept 28, the central banks said under a long-term strategic partnership, they agreed to further strengthen cooperation in key areas such as capacity building and human capital development and 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.

It will also involve 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.

“The signing of this MoU marks the beginning of a new area of cooperation between the HKMA and BNM,” said HKMA chief executive Joseph Yam. “It reflects our joint commitment to further develop the Islamic finance industry and paves the way for future initiatives that will benefit both Malaysia and Hong Kong.”

BNM governor Tan Sri Dr Zeti Akhtar Aziz said: “This effort which extends the cooperation in the area of Islamic finance will provide further opportunities for increased economic and financial flows between Hong Kong and Malaysia.”