Islamic finance is slowing as the global financial crisis hits its hubs in Malaysia and the Gulf, but the sector now has a chance to move on to Western economies seeking to boost their financial centers. Regulatory differences still plague efforts to build cross-border Islamic banking, and harmonization among different schools of thought is one of the nascent industry's main obstacles as it looks to grow in European countries with large Muslim communities.

Sumitomo Mitsui Financial Group, one of Japan’s three so-called “megabanks,” on Thursday reported a full-year loss of nearly $4 billion and said it planned to raise $8 billion via a new share offer, The New York Times reported. The news raised fresh concerns about the health of the country’s other banks as Japan’s recession deepens. SMFG said it had accrued a net loss of ¥390 billion, or about $3.9 billion, during the fiscal year that ended March 31--far off the ¥180 billion profit it had projected and the ¥462 billion profit it made the previous year.

Japan’s ruling party unveiled the country’s biggest-ever economic stimulus plan Thursday, a ¥15.4 trillion, or $154.4 billion, package of subsidies and tax breaks that aims to stem a deepening recession in the world’s second-biggest economy, the New York Times reported. The Liberal Democratic Party released details of the draft stimulus, worth about 3 percent of Japan’s gross domestic product, ahead of a formal announcement Friday. The plan would bring Japan’s total stimulus spending to ¥27 trillion since Prime Minister Taro Aso took office in September.

Larry Yung quit as chairman of Citic Pacific Ltd. after the biggest currency loss reported by a Chinese company triggered a police investigation, Bloomberg reported. Yung, the son of a former Chinese vice president, will be replaced by Chang Zhenming, 52, the vice chairman of parent Citic Group, Citic Pacific said in a statement to the Hong Kong stock exchange today. The 67-year-old executive, ranked the nation’s richest man in 2005, is leaving after currency losses of HK$14.6 billion ($1.9 billion) forced him to seek help from Beijing.

The Russian factory known as Avtovaz is one of the least efficient automobile factories anywhere in the world--each worker produces, on average, eight cars a year, compared with 36 cars a year at General Motors’ assembly line in Bowling Green, Ky., for example. Yet the government is giving Avtovaz billions of dollars in aid, no strings attached, The New York Times reported. “The key issue is too much government protection,” Yegor T. Gaidar, a former prime minister, said.

Invista Real Estate, the UK's largest listed property fund manager, is poised to buy the Asian property business of Babcock & Brown, the Australian investment house that was placed into voluntary administration last month, the Financial Times reported. Invista, which is majority owned by HBOS, is to acquire Babcock & Brown's fund management platform in the region, including offices in Hong Kong and Singapore and more than 20 staff.

Bob Bangerter has been adjudicated bankrupt by a New Zealand court for the second time. Sir Robert Jones' company, Robt Jones Holding, had applied to bankrupt the Blue Chip co-founder because the company was owed $395,000 of unpaid rent for an Auckland office block where Blue Chip operated from. The 72-year-old Mr Bangerter had signed personal guarantees for the lease on the premise. Mr Bangerter was not represented in the High Court at Auckland today--his partner Maree Aitkenhead said he could not appear in court due to ill health.

Chinese restaurant Canton Wok in Joo Chiat has closed and its chef-owner Ang Song Kang, popularly known as Chef Kang, has had to file for bankruptcy after a failed business venture in China, The Straits Times reported. The 44-year-old chef tells Life! he invested in a Guangzhou motor and machine oil plant in 2005 with two Chinese nationals. He had known one of them for about three years. He invested $200,000 of his savings in the business and got a 25 per cent stake in it.

Australian iron ore miner Fortescue Metals Group Ltd. said it will defend itself in court against claims it misled the market in 2004 over agreements with three Chinese government-backed entities, The Wall Street Journal reported. The long-awaited court case, brought against Fortescue by the Australian corporate watchdog, begins next week and is expected to last about five weeks.

There are many small tragedies within a global disaster like this, the Business Spectator reported, and one of them is Ventracor--for years one of Australia’s leading biotech prospects. Two weeks ago, Ventracor went into voluntary administration and is now, amazingly, facing complete closure. It has no debt and a technology that works: 400 people are walking around in the United States with its artificial heart whirring in their chests.