Japanese banks’ Islamic finance
capabilities could be boosted following a Financial Services
Authority (FSA) consultation.
The consultation, which runs until March 27, is
expected to open the onshore sukuk market - a boost for
Asia’s largest domestic bond market.
This proposal broadens the products that Japanese
banks can offer. It will allow banks to provide Islamic finance
services to their clients, so that they can lend in the forms
of commodity murabahah andijarah.
It also adds clarifications for banks to make certain
investments in the forms of mudarabah
andmusharakah as well as certain derivatives
But Japanese lawyers believe that the
consultation's project finance implications will be most
While European and...