Singapore, Singapore (PressExposure) December 15, 2009 -- On the sidelines of the 16th World Islamic Banking Conference in Bahrain yesterday the Central Bank of Bahrain and the Monetary Authority of Singapore (MAS) have signed an agreement providing a formal basis for supervisory cooperation and mutual support. The agreement also paves the ways for information sharing between the two central banks to monitor cross border financial transactions and will also facilitate staff training and technical assistance between the two organizations.
Later it was disclosed that Singapore will be hosting the Asian version of the Islamic Banking Conference in June 2010, reiterating the interest and the significant efforts of the Government to establish the island state as an international Islamic capital markets hub. Singapore being a non-Muslim jurisdiction, applies a single regulatory framework to both conventional and Islamic banking. These regulatory measures address prudential issues of liquidity, credit, market, operational and concentration risks relevant to both conventional and Islamic banks.
The city state is an undisputed hub in the region for conventional banking and a trusted financial center offering robust economic and financial fundamentals within a socio-politically stable environment. Risk management, wealth management and private banking have been identified as major growth areas, buoyed by Singapore's reputation for trust and integrity, as well as the region's post-millennium economic boom, notably in China and India.
The City state recently graduated to the OECD's 'white list' and this will critically enhance Singapore's position as a major international private banking center. Following the Dubai debacle, investors are looking for more reliable markets. Also up for grabs is a bigger share of an estimated USD 1 trillion Islamic financing industry, which like conventional banking is back on a growth trajectory as the global credit crisis ebbs. Singapore with its long and successful history as a financial hub will attract the attention of investors who now prefer to operate out of more established jurisdictions.
Singapore has the transparency, service standards, regulatory measures and a good standard living complemented by a pro business environment. These factors provide the necessary impetus for investors, enterprises and entrepreneurs to set up their base here to capitalize on the Asian promise amidst the seismic shifts in the global economy.