Check out what it means for Islamic finance.
The new legal framework for Islamic banking and takaful is now at the final stages of the enactment process, Bank Negara Governor Tan Sri Dr Zeti Akhtar Aziz said Wednesday.
She said the new law is aimed at promoting certainty to the legal and regulatory treatment of Islamic financial transactions by providing legal recognition to the contractual requirements in accordance with the Syariah.
"This provides a comprehensive legal environment under which effective risk and profit sharing activities can take place, encompassing all aspects of Islamic financial transactions," she said at the Islamic Development Bank Regional Lecture Series on Islamic Economics, Finance and Banking in Jakarta.
The text of her speech entitled, 'Finance and the Real Economy Fostering Sustainability' was made available to Bernama here.
The new law would cover all aspects from Islamic prudential and business conduct requirements to the legal treatment of Islamic banking assets upon its resolution.
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