KPMG: Barriers remain in expansion of Islamic finance

There are still some barriers to the expansion of the Islamic finance industry, a new survey from the Big 4 firm KPMG has found.

A
lack of qualified Islamic bankers, weaknesses in transparency and
financial reporting and the ongoing matter of regulatory capital are
all obstacles to the growth of the sector, the KPMG report, titled
Growth and Diversification in Islamic Finance, stated.

The survey contains case studies of HSBC Amanah and Unicorn Investment Bank.

Paul
Furneaux, financial services partner with KPMG in the UK, explains:
"Respondents were aware that they would have to be more creative in
product innovation in areas such as derivatives, swaps and options, but
recognised that the market is currently at the bottom of a steep
learning curve."

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