HSBC receives Islamic licence in Malaysia

HSBC Bank Malaysia Berhad has become the first locally incorporated foreign bank to be awarded a licence to set up an Islamic banking subsidiary by Bank Negara Malaysia, the central bank.

The new entity will be called HSBC Amanah Malaysia Bhd.

HSBC Bank Malaysia first started offering Islamic financial solutions in the country in 1994. With the establishment of the Islamic banking subsidiary in Malaysia, HSBC Amanah will now become a distinct local legal entity holding a universal banking licence.

In addition to a comprehensive suite of retail and corporate financial solutions and access to Islamic capital markets, HSBC Amanah will have Shariah compliant product offerings in wealth management and Takaful (Islamic insurance) through HSBC Amanah Takaful.

ôUnder the licence, the Islamic banking subsidiary will be able to provide HSBC customers with the ability to bank with HSBC Amanah across an expanded nationwide delivery channel," says Yakub Bobat, newly appointed managing director of HSBC Amanah.

ôWith this licence and the strong demand for Islamic products and services, we intend to contribute towards the acceleration of the industryÆs growth," adds Irene M Dorner, deputy chairman and chief executive officer of HSBC Bank Malaysia. "The awarding of the licence is also timely as it is in line with HSBC groupÆs initiative of making Malaysia the regional hub for HSBC Amanah.ö