Report: Rules, low demand hinder Malaysian Basel III Sukuk


KUALA LUMPUR: Malaysia is in many ways one of the world's leading Islamic financial markets, but regulatory issues and comfortable balance sheets are causing it to lag behind the Gulf in one innovation: capital-boosting sukuk.

Since last year, Gulf banks have been developing sukuk designed to increase their capital, in order to meet new Basel III banking standards due to be phased in around the world over the next several years.

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