Unicorn to set up Malaysian Islamic banking unit

Bahrain-based Unicorn Investment Bank is setting up an Islamic banking unit in Malaysia after being the first foreign bank to be given a licence under a new initiative, newspapers reported on Tuesday.

Unicorn recently obtained the licence from the central bank to establish an international Islamic banking subsidiary under the Malaysian International Islamic Financial Centre initiative, the papers said.

Central bank officials could not be immediately reached for comment.

Under the initiative, banks are allowed to conduct a wide array of Sharia-based banking business in Malaysia with non-residents in non-ringgit currencies.

Bank Negara has said that it was prepared to issue more licences to foreign banks which plan to conduct Islamic banking in multiple currencies to turn Malaysia into a global Islamic banking centre.

Unicorn has appointed Vaseehar Hassan Abdul Razack, former chairman of Malaysia's RHB Islamic Bank, as the chairman of the Malaysian unit, Unicorn International Islamic Bank Malaysia.

Vaseehar was quoted by the Star newspaper as saying that the bank would be looking to acquire at least a 30% stake in a local Islamic bank over the next 12 to 18 months.

Unicorn had earlier failed in its bid to buy a stake in Malaysia's oldest Islamic lender, Bank Islam Malaysia. (Reuters)

Print | Email | Discuss this article |

USER COMMENTS (0 COMMENTS)

POST A COMMENT

CLICK HERE TO POST A COMMENT

Add your Comment All posts are sent to the administrator for review and are published only after approval. ArabianBusiness.com reserves the right to remove any comment at any time for any reason. Please keep your responses appropriate and on topic.
Name *
Remember me on this computer
Email *	(Your email address will not be published)
City
Country
Subject *
Comment *
Notify me of further comments
Security Code *
Please click post only once - your comment will not be published immediately.