Unicorn sets up Islamic bank unit

BAHRAIN-based Unicorn Investment Bank (Unicorn) is establishing a wholly-owned international Islamic banking subsidiary in Malaysia.It has appointed Datuk Vaseehar Hassan Abdul Razack as the chairman of the Malaysian subsidiary, called Unicorn International Islamic Bank Malaysia Bhd (UIIBM).Vaseehar, a banker with extensive experience in investment, commercial and Islamic banking, resigned from his post as the chairman of RHB Islamic Bank Bhd, RHB Bank Bhd and RHB Capital Bhd yesterday to assume his new position today.
Unicorn recently received, through Bank Negara Malaysia, its Islamic banking licence from the Ministry of Finance.It is believed to be the first foreign bank to obtain the licence to establish an international Islamic bank subsidiary under the Malaysian International Islamic Financial Centre (MIFC) initiative.Under the initiative, international Islamic banks are allowed to conduct a wide array of syariah-based banking business in Malaysia with non-residents in international currencies other than the ringgit.They are eligible for full tax exemption accorded under the Income Tax Act 1967 for 10 years from the 2007 year of assessment.The MIFC initiative was formulated, among other things, to strengthen non-ringgit-denominated Islamic banking.Bank Negara had said that it was prepared to issue more licences to foreign banks that plan to conduct Islamic banking in multiple currencies to turn Malaysia into a global Islamic banking centre.Unicorn was established in May 2004. It reported a record US$23.8 million (RM78.8 million) net profit in the six months ended June 2006. It also doubled its capital to US$233 million (RM771.2 million) after a successful fund-raising initiative in the middle of last year.It was one of the bidders for the 49 per cent stake in Bank Islam Malaysia Bhd last year, but subsequently withdrew from the bidding.Malaysian Islamic banking assets account for 13 per cent, or RM108 billion, of the country's total banking assets, and half of the Islamic financial market comprises ringgit-denominated sukuk, or Islamic corporate bonds, worth RM125 billion. -www.btimes.com.my