The plans of two of Indonesia’s largest Islamic-based banks, Bank Syariah Mandiri (BSM) and Bank Muamalat, to hold an initial public offerings (IPO) have been dampened by Bank Indonesia (BI), the country’s banking regulator, which has suggested that the banks bide time before floating their shares on the bourse.
BI director for sharia banking, Edy Setiadi, says that there are still problems plaguing Islamic-based banks’ operations in Indonesia, such as their huge reliance on haj funds managed by the Religious Affairs Ministry, which is the reason the country’s sharia banking has seen lower-than-expected growth in recent months………………………………………..Full Article: Source