Japan FSA consultation to boost Islamic finance

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 transactions.