Wednesday November 16, 2011
Islamic banking gets more customers from conventional market
KUALA LUMPUR: The growth from the conversion of conventional banking customers into Islamic banking is higher than that from the unbanked market, said Standard Chartered Saadiq global head of Islamic banking (consumer banking) Wasim Saifi.
“So far the growth in Islamic banking has come from customers switching to Islamic banking from the conventional banking space.
Banks have not been able to find it profitable or feasible to penetrate deeply into the unbanked population,” he said on the sidelines of the Islamic Financial Intelligence Summit.
On concerns whether a bank that operated in both conventional and Islamic banking could properly separate those two businesses, Wasin said regulation was quite strict and banks as well as syariah boards would ensure that there was no common link of assets.
“We ring-fence the Islamic assets and liabilities so that they are separate from our conventional assets.”