As good corporate governance is part of Islamic values, Islamic banking institutions need only to adapt to the code of ethics of the corporate governance to their business. In the Malaysian context, the same good corporate governance practices are applied for both conventional and Islamic banking institutions. To enhance the standard of corporate governance in the banking sector Bank Negara Malaysia has introduce measures including among others, specific guidelines on the code of conduct for directors, officers and employees of the banking institutions and guidelines on the directorship and the prohibition of loans to directors, staff and their interested corporations. The main objective of these guidelines is to engender public confidence in banking institutions and to ensure that the management and board of directors exhibit integrity and professionalism in the running of the banking institutions. Banking institutions are prohibited from the extension of financing and credit facilities to related parties including its directors and staff as well as family members and interested corporations. Such prohibitions are aimed at preventing misconduct and irregular practices in provision of finance whilst ensuring fair and equitable treatment to the public. These governance are universal in nature and therefore, Islamic banking institutions would not be faced with any difficulty in adopting these values. Secondly, the objective is to prevent conflict of interests and accord responsibility on the banking institutions to provide complete and accurate information.
This Seminar is one of the platforms for regulators and financial institutions to come together to share views and experiences in regulatory issues particularly pertaining to accounting standards, financial framework and transparency in the Islamic banking operations. I also hope the participants would take the opportunity to acquire as much knowledge as possible during these two days from the invaluable insights presented by the distinguished speakers. On that note, I wish you a successful Seminar. Thank you. BIS Review 35/2002  3