Mizuho Financial Group

Japan's 3 megabanks eye Islamic finance overseas

Japan's three megabanks are considering whether and how they will offer financial services under Islamic law overseas now that the Financial Services Agency will allow them to engage in such operations at their foreign branches starting as early as April. Mitsubishi UFJ Financial Group would offer deposit and lending services that are permissible under Sharia at its Dubai branch in the United Arab Emirates as early as fiscal 2015, pending approval from the local authorities. Sumitomo Mitsui Banking Corp. may offer similar services at its branches in Dubai and Singapore. Mizuho Financial Group likely will make its London branch the operational centre for Islamic finance in the Middle East.

Japanese get into Islamic financing

Several Japanese institutions are establishing and expanding their Islamic finance businesses. Bank of Tokyo-Mitsubishi UFJ and Sumitomo Mitsui Banking for example made a Shariah-compliant deal with Brunei Gas Carriers (BGC). Other financial institutions and insurance companies focus on Malaysia to offer their Islamic products.

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