Forum aims to identify and address challenges for orderly resolution of Islamic banks
Kuala Lumpur, 11 September 2024: Perbadanan Insurans Deposit Malaysia (PIDM) today held its inaugural muzakarah (Arabic term meaning discussion or discourse) themed ‘Transfer Mechanisms for Islamic Bank Business, Assets and Liabilities’. The muzakarah was attended by members of the banking industry’s Shariah fraternity and aimed to uncover impediments and find solutions to issues that may arise in the resolution of a failed Islamic bank.
“As Islamic banking grows in importance in Malaysia, it becomes more crucial for PIDM to ensure their orderly resolution and the continuity of critical Islamic banking services in the event of a failure. This includes assessing the transfer readiness of Islamic member banks. PIDM’s muzakarah offers the Shariah fraternity a platform to discuss and deliberate the development of Shariah-compliant transfer mechanisms and reach a consensus in addressing potential industry challenges,” said Rafiz Azuan Abdullah, Chief Executive Officer of PIDM.
“Our ultimate goal is to identify and address impediments during business as usual so they can be avoided or minimised during resolution,” Rafiz added.
Speakers and panellists discussed a range of topics on resolution, including PIDM’s role as a resolution authority for its member institutions, and the mechanisms and Shariah considerations in implementing the full and partial transfers of failed Islamic banks. The event was officiated by Dato Sri (Dr) Zukri Samat, Chairman of PIDM.
Discussions with the local Shariah fraternity on the topic of resolution are expected to continue in future forums, with PIDM striving to lead the narrative and conversation on Shariah aspects of resolution.
Issued by:
Corporate Communication Department,
Perbadanan Insurans Deposit Malaysia.