What is Labuan Banking?
Labuan banking means the business of receiving deposits on current accounts, deposit accounts, savings accounts, and includes the investment banking business, Labuan financial business, Islamic banking business and such other transactions and terms and conditions as specified by Labuan FSA. It is governed by Part VI of the Labuan Financial Services and Securities Act 2010 (LFSSA).
What is Investment Banking?
Investment banking means the business of providing credit facilities and consultancy and advisory services relating to corporate and investment matters, including making investments on behalf of any person. Other activities include undertaking foreign exchange transactions, interest rate swaps, dealings in derivative instruments or derivative financial instruments or any other similar risk management activities.
What is Islamic Banking?
Islamic banking is defined as a banking business that is in accordance with Shariah principles.
Who May Apply?
Organisations that meet the following minimum criteria may apply for a Labuan banking license:
- Must be a bank or financial institution;
- Possesses a sound track record;
- Accorded a good credit rating by acceptable rating agencies;
- Supervised by a competent regulatory authory; and
- Conforms to generally accepted standards of international banking practices or the Bank for International Settlements (BIS).