Islamic financial institutions must attempt to reach all levels of community to broaden its horizon, Central Bank Governor Dr Zeti Akhtar Aziz said today. "We need to reach those segments of society and economic activities that have not fully benefited from the success of Islamic finance," Bernama, the Malaysian news agency, quoted Zeti as saying. Opportunities must also be created for Islamic financial products to have an outreach to the small and medium-sized enterprises (SMEs), she said. Financial instruments structured under the Salam, Istisna' and Musyarakah contracts need to be designed to stimulate activities in agriculture and manufacturing sectors where conventional finance participation is limited. Zeti said this in her opening speech at the INCEIF's half day Inaugural Intellectual Discourse entitled: "Islamic Finance: Issues and Challenges of Co-Existence in an Entrenched Convential System," in Kuala Lumbur. The central bank chief said that Islamic financial institutions should not only be assessed by their Shariah aspects, but also by other factors including their effectiveness and efficiency, their resilience and their ability to evolve and reinvent to meet the challenges of the continuously changing demands. In Malaysia, she said the Islamic financial system has evolved as a competitive component of the overall financial system, complementing the conventional financial system as a driver of economic growth and development. -- SPA
