a review and industry consultation, MAS has opted
to regulate Islamic banking under the existing
banking regulatory framework as many of the supervisory
processes and prudential measures are common to
both conventional and Islamic banking activities.
In September 2005, we fine-tuned banking regulations
so that banks in Singapore can offer Murabaha financing,
where the bank purchases the goods upon the request
of a customer and on-sells them to the customer
at an agreed profit margin, with payment made on
a deferred basis.