He said collaboration between financial centres in Islamic finance was an important part of the process that would contribute towards expanding global development of the industry.
"The importance of our relationship has been cemented not long ago with the signing of the memorandum of understanding between BNM and the United Kingdom Trade and Investment," he said in his keynote address at the ISRA-IIBI Second Annual International Thematic Workdshop 2010 in London Monday.
The text of his speech was released here Tuesday.
Muhammad said both countries' strong collaborative endeavours were already visible in the area of education and capacity building, evidenced by the growing number of strategic alliances between several Malaysian and the UK education and training institution in recent years.
"Several UK financial institutions have also successfully established presence through joint-ventures with local partners in Malaysia's takaful market," he said.
He hoped that there would be more collaborative endeavours going forward to exploit the strength and synergies between the two centres, particularly in areas that would lead to enhancing the efficiency of Islamic finance and greater cross-border transactions.
On the legal aspects in the conduct of Islamic finance, Muhammad said, legal documentation formed an integral part of the sector as it provided a critical bridge between syariah and Islamic finance practices.
He said there were two major considerations in ensuring good legal documentation of Islamic financial transactions.
"Firstly, there is a need to ensure that the documentation conforms to syariah in such a way that it enables the operationalisation of syariah principles into legally enforceable Islamic finance contracts.
"The second relates to the importance of moving towards greater standardisation in the legal documentation of Islamic financial transactions," he said.
Source : http://www.bernama.com.my/bernama/v5/newsbusiness.php?id=546533 - Nov 30, 2010
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