Taiwan allows local banks and insurers to invest in Islamic bonds

Taiwan's Financial Supervisory Commission (FSC) has given domestic banks and insurance companies the green light to invest in Islamic bonds or sukuk, five months after opening up the market to foreign issuers of the debt. Taiwanese lenders will be allowed to allocate up to 10% of their net asset values to sukuk, the FSC said in a statement. The regulator did not set a cap for insurance companies, saying only that Islamic bonds are categorised as foreign fixed income in their portfolios. Insurers are allowed to invest a maximum 65.25% of their investable assets in foreign bonds, Asia A...