Banking Industry Malaysia

Central Bank Governor Stepping Down: Malaysian central bank governor Jaffar Hussein will retire on May 1, according to Anwar Ibrahim, finance minister and deputy prime minister. The retirement, announced Friday, came one day after Hussein revealed that the bank lost $2.1 billion in foreign currency trades last year. Jaffar, 63, a former chairman and chief executive officer of Malayan Banking Bhd., took personal responsibility for the Bank Negara loss at an earlier news conference.

Foreign Bank Branches a Possibility: The government said it is considering allowing foreign banks to set up new branches in Malaysia for the first time in more than 10 years. The government is reportedly considering an application from the Bank of China to open a branch in Malaysia.

First, a short geography quiz: You may have heard of Grand Cayman, Malta and even Guernsey. But can you find Nauru, Vanuatu and Labuan? And what do they all have in common? Yes, they are all fairly remote islands. But all six also are up-and-coming IOFCs, an acronym in the banking industry for international offshore financial centers. They may epitomize the term backwater, but they are attracting billions of dollars in investments and deposits.

First, a short geography quiz: You may have heard of Grand Cayman, Malta and even Guernsey. But can you find Nauru, Vanuatu and Labuan? And what do they all have in common? Yes, they are all fairly remote islands. But all six also are up-and-coming IOFCs, an acronym in the banking industry for international offshore financial centers. They may epitomize the term backwater, but they are attracting billions of dollars in investments and deposits.