Islamic Finance

Malaysia central bank to issue revised trade credit framework for takaful by year-end - media

Bank Negara Malaysia (BNM), the country's central bank, will issue a revised trade credit insurance and takaful framework by the end of this year or early next year, according to state news agency Bernama citing BNM director of Islamic banking and takaful Mohd Zabidi Md Nor. 

"The guidelines that we have issued do not capture takaful. So it is timely (for us) to refresh this and bring visibility to a higher level," Bernama quoted Md Nor as saying. 

He added that the framework revision will provide clarity in terms of product recognition and criteria for qualifying credit risk mitigation under the Capital Adequacy Framework for takaful providers and operators. 

According to Bernama, the Export-Import Bank of Malaysia, or Exim Bank, is the sole trade credit takaful provider in Malaysia and the product is only available internally. 


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