Business

Sharia banks will weather
global crisis, BI predicts

The current global economic crisis will have no significant impact on Indonesia’s sharia banking industry, says Bank Indonesia (BI).

“The global economy will not disrupt the sharia bank industry,” BI deputy governor Halim Alamsyah said Wednesday, as quoted by tempo.co.

Sharia banks, he explained, focused their funding mostly on national businesses and therefore would not suffer any direct consequences of either the debt crisis in the eurozone or the recession in the United States.

He forecast that sharia banks would have immense opportunity to finance the productive real sector in 2012 and were likely to make policies that would enable them to seize the opportunity.

According to Halim, sharia banks could reach new heights if they empowered their parent banks through the development of their banking infrastructure, information technology and risk management quality.

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