Islamic Finance Contributes to Global Financial Stability

TOKYO, Japan, Oct. 3, 2012/BERNAMA-AsiaNet/ —

According to Deputy Finance Minister Datuk Dr Awang Adek Hussin, the Shariah
compliant Islamic Finance is a viable alternative financial system for curbing
excessive leverage as well as delinking financial intermediation from the real
economy.

Addressing the International Symposium on ‘Sustainable Growth – Financial
Stability’ here yesterday, Awang Adek’s keynote speech highlighted the
importance of Islamic banking to further bankroll the real economy, and how the
growing interest in Islamic finance as a force of moderation is receiving
global attention.

His view was seconded by Yoshihiro Watanabe, one of the three Japanese members
of the APEC Business Advisory Council (ABAC), whose membership came from the
direct nomination of the Japanese Prime Minister. Watanabe affirmed the
importance of Islamic Finance completely, given the emphasis on ‘real economy’
as the ethical underpinning.

Deliberating on the lessons learned from previous and current economic and
financial crises, the conference was aimed at identifying the social and
economic governance models that could build more inclusive societies for
sustainable growth.

The event, held at Keidanren Kaikan, Japan Business Federation, was jointly
organised by the Institute of International Monetary Affairs (IIMA), the Global
Movement of Moderates Foundation (GMMF) and the Konrad Adenauer Foundation
(KAS).

The conference brought together 200 policy analysts, scholars and decision
makers for a dialogue on sustainable growth and financial stability.

Among those present at the conference themed ‘Current Lessons for Social and
Economic Governance’ were Takehiko Nakao, the Vice Minister of Finance for
International Affairs in Japan, Michael Meister, the Deputy Chairman for
Finances and Budget in Germany, and Fan Gang, the Director of the National
Institute of Economic Research in China.

Fan Gang urged the participants to be mindful of the US and European crisis,
for they are now occurring in the core rather than at the periphery of the
economic system as in the case of the Asian financial crisis. Michael Meister
on the other hand, called for a more robust social insurance sector to cushion
the effects of unemployment and financial havoc.

Takehiko Nakao in turn argued that the over-incentivisation of the bankers have
unnecessarily heightened the risk of overleverage, as they take bigger risks on
behalf of their banks or companies to make immense personal gains, often at the
expense of millions of consumers and depositors globally.

‘The problems were well articulated and conceptualized at the international
symposium to say the least. Since it precedes the upcoming joint World Bank and
International Monetary Fund meeting on October 12-14, the saliency of the
presentation was all the more welcoming,’ said the CEO of GMMF, Khalek Awang
who was present at the conference.

‘Invariably, the symposium combines insights of experts and specialists on
fiscal spending, monetary economics, Islamic banking and public finance, all of
which are relevant to the quest for moderation based on justice, equilibrium
and excellence,’ said Khalek, adding that as an ASEAN endorsed idea, the Global
Movement of Moderates (GMM) has chosen a good platform to look into the
international economic and financial problems, especially the sustainability of
modern standards of living.

FOR FURTHER INFORMATION PLEASE CONTACT:
Name : Jenny Wong
Senior Manager, Media & Communications
Global Movement of Moderates Foundation (GMMF)
Mobile : 6017-3317906
E-mail : jenny@gmomf.org

Website: www.gmomf.org

SOURCE: Global Movement of Moderates Foundation (GMMF)