Current Issue on Islamic Banking and Finance Essay

unseasoned paradigm of product packaging. Moslem banking and pay has emerged as a fiscal mediation process that is competitive and resilient and that contributes to the overall wealth creation, evolution and development of our nation.In the middle of an increasingly challenging and competitive fiscal environment, the evolution of a comprehensive Islamic pecuniary system seeks to run into the range of requirements of a rapidly changing economic environment, with its soundness and perceptual constancy secured through the robustness of its regulatory framework supported by the lastingness of its financial infrastructure and the sophistication of its products and services.Indeed, the strength of the respective components of the system and the interconnections of its markets pass on open new frontiers in Islamic banking and finance and will maximise the potential and opportwholeies that it accords. In the new current issues on Islamic banking and finance have increased their pro duct in sophistication from the deposits product to crossbreeding product that are able to enhance returns to depositors.Further advancement was do with the introduction of the Islamic variable rate financing mechanism that provides an election to the fixed rate financing. This will assist the Islamic banking institutions in mitigating recess of the risk emanating from asset and liability mismatches. New innovative Islamic financial instruments such as Islamic asset-backed securities have also emerged and the financial structures vestigial Islamic securities become more specifies.The rapid gain of Islamic unit trusts comprising a variety of bond currency, equity funds and balanced funds increases the efficiency and potential of the Islamic financial system as an intermediation channel by providing investors access to professional asset management that is ground on their distinct risk tolerance levels. The issuance of new Islamic banking licenses to qualified opposed financi al institutions will allow for the presence of foreign Islamic banking players to act as bridge between Malaysia and other globular Islamic financial markets and increase the potential to tap new markets and growth opportunities.