BANK Rakyat, the country’s biggest Islamic cooperative bank, expects loans to grow about six to seven per cent this year on the back of higher retail financing.
Its chief corporate services officer Nik Mohd Nasir Nik Rithauddeen said although the growth depends on the performance of the country’s economy, but it is confident that it will achieve its target growth by year-end.
“Next year we expect our loan growth to be about seven per cent or more, but again it depends on the economy,” he said at the media briefing on International Islamic Financial Conference yesterday.
Commenting on the 2015 Budget that was presented by the Prime Minister Datuk Seri Najib Razak last week, Nik Mohd Nasir said there will not be any big impact on the financing industry although banks are now looking on the growth of housing market.
“I think the government has provided enough support towards housing market. Once the sector grows, the bank will take advantage on the growth to assist more people purchase properties,” he said, adding that there is a high demand for properties ranging between RM200, 000 and RM500,000.
Meanwhile, Bank Rakyat is working with the International Shariah Research Academy for Islamic finance to organise the International Islamic Financial Conference.
The conference will address the realisation within the Islamic finance industry towards the need for genuine Islamic banking practices that uphold the syariah-led principles of honesty and transparency.
The conference will be held on October 27 and 28 at the Kuala Lumpur Convention Centre and 500 participants are expected to attend.
The opening ceremony will be officiated by Finance Minister II Datuk Seri Ahmad Husni Hanadzlah.