Islamic banking conference

2 September 2004

Monash University Malaysia will co-host a major Islamic banking conference next week.

The International Conference on Islamic Banking will be hosted in Malaysia by the university and the Institute of Islamic Understanding of Malaysia on 9 and 10 September.

Under Islamic banking, banks do not charge interest on loans. Instead they share in some of the profits from ventures they support, and pass on those profits to the bank's depositors.

Islamic banks are also required to make socially responsible investments, such as investments in charities. They are prohibited from investments in areas deemed socially undesirable such as breweries, casinos and pornography.

Monash University Malaysia's Chair of Accounting and Finance, Professor Bala Shanmugam, said a major objective of the conference was to provide a focused platform and communication channel for researchers, academics and industry leaders to discuss Islamic banking as an emerging viable alternative to conventional banking.

He also said that a lack of standardisation of procedures and terminologies had hampered efforts to internationalise and develop Islamic banking.

"The phenomenal growth of Islamic banking in recent years underpins the need for greater standardisation of the system to eliminate confusion and facilitate wider acceptance of Islamic products and services," he said.

Malaysia's Second Finance Minister Tan Sri Nor Mohammed Yaakcop and Bank Negara Governor Tan Sri Dr Zeti Aziz will attend the conference, which is expected to attract about 300 participants from around the world.

For more information, call Robyn Anns, Monash Media, on + 61 3 9905 9317 or 0417 568 781.