KUALA LUMPUR: Agrobank will move away from its conventional-based operations and become a full-fledged Islamic bank starting today.
Agriculture and Agro-based Industry Minister Datuk Seri Ismail Sabri Yaakob said Agrobank’s transition to an Islamic banking system was in line with the Government’s aim to increase Islamic funding to 40% of total financing in Malaysia by 2020.
“In 2010, Islamic financing contributed 29% of the total financing in Malaysia. The bank’s transition to Islamic banking is expected to increase the percentage of demand from the farming sector for Islamic financial products and services which are syariah-compliant,” he said at the launch of Agrobank as an Islamic banking institution here yesterday.
Also present was Agrobank chairman Tan Sri Faizah Mohd Tahir.
Ismail said Agrobank as a full-fledged Islamic bank, would complement the supply chain and would be syariah-compliant from all aspects, whether in terms of providing food source or funding a project.
Agrobank was also expected to provide more financing to help increase production and productivity of agriculture products in the country, he said.
“In addition, we hope the bank will continue to introduce more products and services relevant to the needs of financing, investments, business protection and households,” he said. – Bernama
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