August 21, 2009

The local Islamic money market has vast potential and the formulation of innovative financial instruments will ensure that the banking industry remains vibrant, says Association of Islamic Banking Institutions Malaysia president Datuk Zukri Samat.He said the new Corporate Murabahah Master Agreement (CMMA) would help raise the level of innovation for deposit products and other Islamic financial instruments.

The CMMA specifies a common modus operandi for Islamic financial institutions in accepting deposits via commodity murabahah.“The potential for the agreement to be adopted is great; we hope the international community will evaluate and use it as well,” Zukri said after the CMMA launch yesterday.