Malaysian and Hong Kong banks to offer Islamic finance in China

Affin Holdings and Bank of East Asia expect their Islamic bank to become operational by 2H12.

Malaysian bank Affin Holdings Berhad and Hong Kong-based Bank of East Asia Ltd (BEA) expect their Islamic or Shariah banking operations in China to become operational by the second half of the year.

“We hope to make a breakthrough this year. It takes a bit of time but Insyaallah (God willing), by middle or end of this year, it will materialise,” said Affin deputy chairman Tan Sri Lodin Wok Kamaruddin.

He said Affin would collaborate with BEA, which owns 23% of Affin. BEA is the biggest foreign bank in China.

Kamaruddin said Affin’s Islamic banking operations in China would be under the brand name, “Affin Bank.”

“It could be in the form of branches we have not finalised on the structure of the operations,” he noted.

Kamaruddin said Affin wanted to further strengthen its relationship with BEA by working with the latter in Malaysia and in China.