KUALA LUMPUR: Bank Muamalat Malaysia Bhd and Bank of Shi Zui Shan (China) today signed a Memorandum of Understanding (MoU) for a partnership to develop Islamic banking in Yinchuan, China.
Bank Mualamat Chief Executive Officer Datuk Mohd Redza Shah Abdul Wahid said following the collaboration, the group hoped to work together with Shi Zui Shan Bank, and set up an Islamic bank in China over the next two years.
He said for a start, the group will share its expertise and conduct training on Islamic banking.
"In this partnership, Bank Muamalat and Bank of Shi Zui Shan have agreed to develop Islamic banking training and commence with the setting up of Islamic banking counter in Shi Zui Shan bank."
He was speaking after the signing of the MoU, witnessed by Deputy Minister of Finance, Datuk Donald Lim.
Mohd Redza Shah said the group will set up a window in 23 of Shi Zui Shan's bank branches in the province within the next 12 months.
"With the setting up of these Islamic banking counters, it will allow us to gauge and test the response to Islamic banking in Ningxia, based on the plan to set up an Islamic bank in China," he added.
Meanwhile, Lim said the collaboration is in line with the government's continuous efforts to encourage Islamic banking.
He said Bank Mualamat has agreed to train five staff of Bank of Shi Zui Shan and the training fees would be borne by Bank Muamalat.
He added that Bank Muamalat will also provide consultation services to Bank of Shi Zui Shan in the development process.
He said China has a Muslim population of over 30 million and most live in Ningxia, a city in Yinchuan.
There is a huge potential market there and I hope both parties will take advantage of it to achieve their common goal," he added. - BERNAMA
Alfalah Consulting - Kuala Lumpur: www.alfalahconsulting.com
Islamic Investment Malaysia: www.islamic-invest-malaysia.com