Japan's Sumitomo Mitsui bolsters its growth initiatives in Asia with the launch of an Islamic finance offering via its Malaysia business.

Sumitomo Mitsui, the Japanese bank, has started offering Islamic finance services through its Malaysia arm as part of the initiatives to strengthen operations in the Asia-Pacific region.

Sumitomo Mitsui Banking Corporation Malaysia Berhad, its wholly-owned subsidiary, obtained its license to provide Islamic finance services from Malaysian authorities in 10 February 2014 and is the second SMBC group to do so. The first was Sumitomo Mitsui Banking Corporation Europe.

"The Islamic finance market is continuing to expand mainly driven by the high economic growth of Muslim states, particularly in Malaysia which launched the International Islamic Finance Centre Initiative in August 2006 and is playing a leading role in the development of the industry as a major business hub," said the company in a statement.

Islamic finance is the generic term for financial transactions that adhere to Islamic or Shariah law. The main principles of Islamic finance include the prohibition of interest and uncertainty and transactions involving non-compliant items such as alcohol, gambling and pork products.