Friday, 30 July 2021
JFGT (20210730-10:56:59 to UTF-8) ART 130 en => fr
Banks Labuan. Offshore accounts in Labuan
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The banking system of Labuan comprises the Central Bank of Malaysia (Bank Negara Malaysia), banks (commercial banks, finance companies, merchant banks and Islamic banks) and a group of financial institutions such as discount houses and offices of foreign banks. The entire banking system is the largest part of the financial system and covers about 67% of financial system assets.

Bank Negara Malaysia (BNM)

Bank Negara Malaysia (Central Bank of Malaysia - Central Bank) was established on Jan. 26, 1959 under the Law on the Central Bank of Malaysia of 1958, the Central Bank aims are:

  • issuing currency and maintaining foreign exchange reserves to ensure the currency;
  • act as banker and financial adviser to the Government of Malaysia;
  • promote monetary stability and sound financial structure, and
∙ to ensure a favorable credit situation in the country.

In general, the Central Bank is intended to promote economic growth, price stability and maintaining monetary and financial stability. Enactment of the Banking and Financial Institutions (BAFIA) in 1998, the authority of the Central Bank were to 1 October 1989 expanded and included the supervision and regulation of financial institutions and deposit-taking, as well as all organizations involved in finance and lending .

Commercial banks

Commercial banks are the largest and most important suppliers of funds into the banking system. Today there are 24 commercial banks (excluding Islamic banks), of which 13 are foreign banks with local registration.

The main functions of commercial banks:

  • providing retail banking services such as accepting deposits, issuing loans and advances, and financial guarantees;
  • trade finance (letters of credit, discounting bills, shipping guarantees, trust receipts and bankers' acceptances;
  • treasury services;
  • payments to foreign customers, and
∙ storage services (safes, deposit of shares).

Commercial banks are also authorized to conduct transactions in foreign currencies, and are the only financial institutions that are allowed to open current accounts.

Offshore Banks

Offshore Banking in Labuan can make only an offshore company or foreign offshore company incorporated or registered solely and exclusively for that purpose, through the office, branch or subsidiary of a licensed Malaysian bank. To obtain a license for offshore banking activities must apply to the Administration of Labuan Offshore Financial Services (LOFSA), provide a guarantee and ensure that minimum capital of 10 million ringgit. Annual fee of 60,000 ringgit shall be payable to the Central Bank not later than January 15. Financial statements are subject to audit and provided to the Central Bank every year. This ensures the confidentiality of such records and transactions of its customers. Prospects for offshore banks in Labuan remains favorable for the period 2005-2006., Particularly given the good results achieved in 2004 The banking industry is part of a wide range of products and services provided by the Malaysian Labuanskim Integrated Offshore Financial Centre (IOFC). The offshore banking industry has shown a significant increase in unaudited profit before tax of 166, $ 8 million in 2003 to 272.9 million U.S. dollars in 2004, high level of profit was achieved thanks to a lower level of reserve for losses on loans (a special coating and the total coverage at a level of 34,3% was 317.4 million dollars in 2004 (in 2003: 483.2 million U.S. dollars), due to the rise of the economy. The total number of offshore banks, including investment was 57 units, compared with 56 in 2003, the number of offshore investment banks in the Malaysian Labuanskom integrated offshore financial center (IOFC) increased to 11 (in 2003 - 9), two new licenses were issued in 2004, Islamic assets (including assets of conventional offshore banks that offer Islamic financial services) grew by 13.8% to 678.7 million dollars (in 2003 - 596.2 million U.S. dollars). Total deposits continued rising trend, increasing by 54 , 4% or 107.2 million dollars, reaching 304.1 million in 2004 total amount of loans receivable grew from 338.4 million dollars in 2003 to 409.4 million dollars in 2004 , of which 71% were issued to nonresidents.

Islamic Banking activity

Currently, Labuan Islamic banking attracts additional capital to its jurisdiction. There is no doubt that Islamic banking is incomprehensible to Europeans and non-Muslims. This is a new financial system that emerged only recently, but are rapidly gaining popularity. The origins of it can be found in the financial restrictions imposed on the pious followers of Islam. Religion Islam forbids interest payments. This means a ban on the requirement of surplus value. Therefore, the traditional western commercial activities available for those Muslims who wish to adhere strictly to the ideals of their faith. Since the interest of any kind is prohibited (and this applies regardless of the level of interest or purpose of interest-bearing loans), Islamic businessmen have found a very reasonable way to circumvent this prohibition. Islam allows the owners of capital to participate in profit-sharing, if such income is uncertain. Thus, Islamic banks instead of investing their money in trade and share profits with their depositors. Known in advance only a proportion, which will share profits, but profits are not the norm itself. Hence, it is in accordance with Islam is permitted. The result is that Islamic banks are more similar to investment banking institutions than commercial banks. These banks generally offer three broad categories of accounts: current, savings and investment. The current account any investor interest is not charged, because such an account is regarded as a transaction for storage between the investor and the bank. Depositors can withdraw their money from the account at any time, and the bank has the right to use depositors' funds. Savings account has the same mode, but the bank may pay periodically depositors variable gain, depending on the profitability of their own activities. Since this type of payment has no form of loans provided by banks and the size of payments is not specified, in accordance with Islamic rules of this mode of counting is legal. Investment Account is a time deposit, which can not be removed before the expiration. The profit rate varies in different banks and obeys the demand and supply market. Islamic deposit characterized by a real profit, and that the interest of commercial banks in Western countries. Because of its investment focus of Islamic banking activities focus on viable projects and their profitability rather than size contributed collateral. Good projects that can not take the usual commercial banks due to lack of collateral may still financed by Islamic banks on the basis of profit sharing. Therefore, Islamic banks can operate at the micro and makroinvestitsionnoy level that enables them to generate many new businesses and stimulate economic development. All this in Labuan is developing Islamic banking on a large scale. This new and growing industry has great potential, because many investors from Islamic countries still invest in conventional financial centers due to lack of other opportunities.

Offshore banks registered in Labuan in early 2005:

ABN-AMRO Bank NV, LABUANSKY BRANCH (ABN-AMRO BANK NV, LABUAN BRANCH)
Al-Hidayat Investment Bank (Labuan) Ltd. (AL-HIDAYAH INVESTMENT BANK (LABUAN) LTD)
AMINTERNESHNL LTD. (AM INTERNATIONAL (L) LTD.)
AMMERCHANT Bank Berhad (AMMERCHANT BANK BERHAD)
BANK ISLAM MALAYSIA Berhad (BANK ISLAM MALAYSIA BERHAD) LABUAN OFFSHORE BRANCH
Bank Muamalat Berhad MALAYSIA, LABUANSKY OFFSHORE BRANCH (BANK MUAMALAT MALAYSIA BERHAD, LABUAN OFFSHORE BRANCH)
BANK OF AMERICA RH NESHNL ASSOSIEYSHN, LABUANSKY BRANCH (BANK OF AMERICA NATIONAL ASSOCIATION, LABUAN BRANCH)
Barclays Bank PLC, LABUANSKY BRANCH (BARCLAYS BANK PLC LABUAN BRANCH)
Bayerische Landesbank, LABUANSKY BRANCH (BAYERISCHE LANDESBANK, LABUAN BRANCH)
BNP PARIBAS, LABUANSKY BRANCH (BNP PARIBAS LABUAN BRANCH)
BUMIPUTRA-COMMERCE BANK (L) Limited (BUMIPUTRA-COMMERCE BANK (L) LIMITED)
KAYLON, LABUANSKY BRANCH (CALYON, LABUAN BRANCH)
CAPITAL INVESTMENT BANK (Labuan) Limited (CAPITAL INVESTMENT BANK (LABUAN) LIMITED)
KATA United Bank (CATHAY UNITED BANK)
SIMBA (L) Limited (CIMB (L) LIMITED)
CITIBANK MALAYSIA (L) Limited (CITIBANK MALAYSIA (L) LIMITED)
CITY CREDIT INVESTMENT BANK LIMITED (CITY CREDIT INVESTMENT BANK LIMITED)
Commercial IBT, LABUANSKY BRANCH (COMMERCIAL IBT LABUAN BRANCH)
Commerzbank AG, LABUANSKY BRANCH (COMMERZBANK AG, LABUAN BRANCH)
Credit Suisse First Boston, LABUANSKY BRANCH (CREDIT SUISSE FIRST BOSTON, LABUAN BRANCH)
DANAHARTA MENEDZHERZ (A) LIMITED (DANAHARTA MANAGERS (L) LIMITED)
DBS Bank Limited, LABUANSKY BRANCH (DBS BANK LIMITED, LABUAN BRANCH)
DEUTSCHE BANK AG, LABUANSKY BRANCH (DEUTSCHE BANK AG, LABUAN BRANCH)
Dresdner Bank AG, LABUANSKY BRANCH (DRESDNER BANK AG LABUAN BRANCH)
ECM LIBRA INVESTMENT BANK LIMITED (ECM LIBRA INVESTMENT BANK LIMITED)
ING Bank NV, LABUANSKY BRANCH (ING BANK NV LABUAN BRANCH)
JP MORGAN MALAYSIA LTD. (JP MORGAN MALAYSIA LTD)
JP MORGAN CHASE BANK NA (JP MORGAN CHASE BANK NA)
KBC Bank NV, LABUANSKY BRANCH (KBC BANK NV LABUAN BRANCH)
Lloyds TSB Bank plc (LLOYDS TSB BANK PLC)
MITSUHO Corporate BANK LTD., LABUANSKY BRANCH (MIZUHO CORPORATE BANK, LTD., LABUAN BRANCH)
MAKKVERI BANK LIMITED, LABUANSKY BRANCH (MACQUARIE BANK LIMITED, LABUAN BRANCH)
MEYBANK INTERNATIONAL (L) LTD. (MAYBANK INTERNATIONAL (L) LTD.)
Morgan Stanley Labuan Investment Bank Limited (MORGAN STANLEY LABUAN INVESTMENT BANK LIMITED)
Natexis Bank POPULER, LABUANSKY BRANCH (NATEXIS BANQUES POPULAIRES, LABUAN BRANCH)
NESHNL AUSTRALIA BANK BRANCH LABUANSKY (NATIONAL AUSTRALIA BANK LABUAN BRANCH)
OSK Investment Bank (Labuan) Limited (OSK INVESTMENT BANK (LABUAN) LIMITED)
Overs-CHAYNIZ BANKING CORPORATION LIMITED, LABUANSKY BRANCH (OVERSEA-CHINESE BANKING CORPORATION LIMITED LABUAN BRANCH)
PUBLIC BANK (L) LTD. (PUBLIC BANK (L) LTD.)
Rabobank Nederland, LABUANSKY BRANCH (RABOBANK NEDERLAND LABUAN BRANCH)
ErEychBi BANK (A) LTD. (RHB BANK (L) LTD.)
RUSDEM INVESTMENT BANK INC.. (RUSD INVESTMENT BANK INC.)
SHREDERZ MALAYSIA (L) Berhad (SCHRODERS MALAYSIA (L) BERHAD)
SOCIETE GENERALE, LABUANSKY BRANCH (SOCIETE GENERALE, LABUAN BRANCH)
Standard Chartered Bank Offshore, LABUANSKY BRANCH (STANDARD CHARTERED BANK OFFSHORE LABUAN BRANCH)
Sumitomo Mitsui Banking CORPORATION (SUMITOMO MITSUI BANKING CORPORATION)
VIST BANK ON ASIA, LTD., LABUANSKY BRANCH (THE BANK OF EAST ASIA, LTD, LABUAN OFFSHORE BRANCH)
BANK IA Nova Scotia, LABUANSKY BRANCH (THE BANK OF NOVA SCOTIA LABUAN BRANCH)
BANK OF TOKYO MITSUBISHI OM, LTD., LABUANSKY BRANCH (THE BANK OF TOKYO-MITSUBISHI, LTD., LABUAN BRANCH)
HONG KONG SHANGHAI BANKING END Corporation Limited, Offshore Banking BRANCH (THE HONGKONG & SHANGHAI BANKING CORPORATION LIMITED OFFSHORE BANKING UNIT)
INTERNATIONAL BANK Commercial CQ CHINA, LABUANSKY BRANCH (THE INTERNATIONAL COMMERCIAL BANK OF CHINA LABUAN BRANCH)
Royal Bank of Scotland PLC (THE ROYAL BANK OF SCOTLAND PLC)
UBS AG, LABUANSKY BRANCH (UBS AG LABUAN BRANCH)
YuEFDzhi BANK LIMITED, LABUANSKY BRANCH (UFJ BANK LIMITED, LABUAN BRANCH)
UNITED OVERSEAS BANK LIMITED, LABUANSKY BRANCH (UNITED OVERSEAS BANK LIMITED, LABUAN BRANCH)

 
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