Uzbekistan and Malaysia establish cooperation on Islamic finance banking system

The Uzbek delegation met with the leadership of the Central Bank of Malaysia (Bank Negara Malaysia) and discussed key areas of cooperation in the field of Islamic banking and financial regulation.

The meeting examined in detail the Malaysian experience - the processes of licensing, supervision and regulation of Islamic banks and financial institutions. In particular, special attention was paid to compliance with Sharia principles and effective liquidity management mechanisms in the Islamic financial system.

There are 16 Islamic banks operating in Malaysia, and their assets account for more than 40% of the country's banking system assets. The Islamic financial market is well-developed in terms of legislation, and various forms of investment, insurance, and financing are widely used.

Uzbekistan does not yet have a fully Islamic bank. Although some Islamic financial products have been piloted in several banks, they have not yet become mainstream. Due to gaps in legislation and the lack of a supervisory system, many entrepreneurs and citizens have difficulty finding loans and investment funds based on Islamic principles.