Japan’s Sumitomo Mitsui Banking Corp starts Islamic finance business in Malaysia

Sumitomo Mitsui Banking Corp (SMBC), core banking unit Sumitomo Mitsui Financial Group, said today it starts Islamic finance business in Malaysia, hoping to tap growing loan demand in Southeast Asia.

Rapid economic growth in Muslim-majority countries in Southeast Asia and the Middle East has spurred many non-Muslim institutions to foray into Islamic finance.

Bank of Tokyo-Mitsubishi UFJ, unit of Mitsubishi UFJ Financial Group, set up an Islamic finance team in Malaysia in 2008 and the team now has 25 bankers. In addition to Malaysia and Indonesia, the bank has also provided Islamic finance in Singapore and Brunei.