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Islamic Finance Briefing - Category | Banking more

Saudi Kingdom’s bank lending growth to remain above 10pct

Posted on 22 March 2013 by Laxman  |  Email|Print

Gulf banks will likely continue their steady recovery from the global financial crisis this year, aided by healthy economic growth in the Gulf Cooperation Council (GCC) and still high oil prices, says Standard & Poor’s Ratings Services yesterday in a report titled “A Growing Economy and Strong Capitalization keeps Gulf banks on a path to recovery.”
“Our forecast for average 4.6 percent GDP growth in the GCC for 2013 should keep demand for bank credit high and expand banks’ earnings. “We believe strong bank lending on the back of corporate and infrastructure growth will help expand revenues of banks in Saudi Arabia, and Qatar,” said Standard & Poor’s Credit Analyst Timucin Engin. “Specifically, we expect average lending growth to remain above 10 percent level for Saudi Arabia.”……………………………………….Full Article: Source

IIRA assigns fiduciary ratings to QIIB

Posted on 22 March 2013 by Laxman  |  Email|Print

Islamic International Rating Agency (IIRA) has assigned a national scale rating of A+/A-1 (QR) (A plus/A-one) to Qatar International Islamic Bank (QIIB). On the international scale, IIRA has assigned a foreign currency and local currency rating of A-/A-1 (A minus/ A-one). Outlook on the rating is ‘Stable’.
The fiduciary score has been assessed in the range of ‘70-75′, reflecting strong fiduciary standards wherein rights of fund providers are adequately defined and protected. The fiduciary score is an aggregation of scores assigned to its three sub-sections, namely Corporate and Shariah Governance, and Asset Manager Quality………………………………………..Full Article: Source

Bank Islam eyes 1.9 mln visa debit cardholders by year-end

Posted on 22 March 2013 by Laxman  |  Email|Print

Bank Islam Malaysia Bhd (Bank Islam) targets to have 1.9 million Visa Debit cardholders by year-end. Business development director Khairul Kamarudin said the response from the public to the bank’s Visa Debit Card, launched in March 2011, was really good.
“With the good response to this card, we can see many people migrating to online payment using the card,” he told reporters after the launch of ‘Thanks A Million Visa Debit Card-i Celebration’………………………………………..Full Article: Source

Islamic banking assets in GCC jump to $ 445 bln in 2012

Posted on 21 March 2013 by Laxman  |  Email|Print

Islamic banking assets with commercial banks in the GCC reached $ 445 billion at the end of 2012, up from $ 390 billion in 2011, with the outlook for the industry remaining relatively positive in 2013. This represents a 14 percent year-on-year growth, which is considerably lower than the five-year average of 19 percent.
According to estimates by Ernst & Young’s Global Islamic Banking Center, Qatar was the fastest growing market where Islamic banking assets are expected to have grown by more than 23 percent during 2012. While Islamic banking assets with commercial banks in the GCC grew by 14 percent in 2012, conventional banking assets grew by only 8.1 percent — indicating the relative resilience and potential of the industry………………………………………..Full Article: Source

Turkey urged to seize Islamic banking chance

Posted on 21 March 2013 by Laxman  |  Email|Print

Islamic banking will triple itself in ten years and it holds further substantial opportunities for Turkey, but there are still margins for growth, a report says. The Turkish Islamic banking sector will triple in 10 years reaching $100 billion by 2023, while the country would have even more potential if it would meet the foreign demand by offering more of a variety of Islamic financial instrument, an Ernst & Young report has said.
Islamic banking, which follows the requirements of Shaira and does not charge interest, has emerged as a prominent system at a time when European banks that have been the backbone of global sector are only slightly recovering from the aftermath of the financial crisis………………………………………..Full Article: Source

Malaysia: Total assets in Islamic banking sector grow 13.8 pct

Posted on 21 March 2013 by Laxman  |  Email|Print

Total assets in the Islamic banking sector grew 13.8 per cent, accounting for 23.8 per cent of total assets in the overall banking system last year, said Bank Negara Malaysia (BNM).

In its Financial Stability and Payment Systems Report, the central bank said, as Malaysia’s Islamic financial system transitions to become more international in orientation, the volume of foreign currency business, including those conducted by the International Islamic Banks and International Currency Business Units, has increased over the years………………………………………..Full Article: Source

Bank Muscat to increase its capital to RO 350 mln

Posted on 21 March 2013 by Laxman  |  Email|Print

Bank Muscat shareholders yesterday granted approval for raising the authorised capital of the flagship financial services provider in the Sultanate from RO 250 million to RO 350 million, with a nominal value of 100 Baisa each.
The extra-ordinary general meeting of shareholders also approved to increase the issued share capital from RO 203,851,068 divided into (2,038,510,684) shares to RO 215,226,068 divided into (2,152,260,684) shares with a nominal value of 100 Baisa each………………………………………..Full Article: Source

Qatar Islamic bank assets up 23pct in ’12

Posted on 21 March 2013 by Laxman  |  Email|Print

The Islamic assets in Qatar’s commercial banking industry rose 23% year-on-year in 2012, outgrowing the Gulf banking industry’s growth of 14%, according to Ernst and Young (E&Y). “Qatar was the fastest growing market where Islamic banking assets are expected to have grown by more than 23% during 2012,” E&Y said in a latest report.
Islamic banking assets with commercial banks in the Gulf region grew only 14% year-on-year to $445bn in 2012, but the growth was considerably lower than the five-year average of 19%, it said, adding those in the conventional banking grew only 8.1%, indicating the relative resilience and potential of the industry………………………………………..Full Article: Source

Regional expansion of Maybank’s Islamic banking is long-term catalyst

Posted on 21 March 2013 by Laxman  |  Email|Print

CIMB Equities Research is maintaining its Outperform recommendation on Malayan Banking Bhd (Maybank) based on the positive growth prospects in the region. It said on Wednesday despite being one of the largest Islamic banking players, Maybank Islamic still sees ample opportunities for growth locally and abroad.
Indonesia is still underpenetrated and there are opportunities to expand into South Asia or even Hong Kong and China………………………………………..Full Article: Source

Morocco: Central bank mulls nat’l Shariah board

Posted on 21 March 2013 by Laxman  |  Email|Print

Morocco’s central bank has started talks with a body of Islamic scholars on establishing a central Shariah board to oversee the country’s fledgling Islamic finance industry, a central bank official said.
The board, composed of scholars and financial experts, would rule on whether instruments and activities complied with Shariah principles. Its creation would be a step towards establishing full-fledged Islamic banks in Morocco………………………………………..Full Article: Source

Bank Negara is liberalising foreign exchange rules to enhance competitiveness

Posted on 21 March 2013 by Laxman  |  Email|Print

Bank Negara is liberalising the foreign exchange administration rules to enhance the economy’s competitiveness and further develop the domestic financial market. The liberalising measures will only come into effect around mid-2013 when the Financial Services Act (FSA) and Islamic Financial System Act (IFSA) come into force.
The measures include allowing residents to freely invest in onshore foreign currency-denominated assets to spur the domestic foreign exchange market through greater demand for foreign currency products and services………………………………………..Full Article: Source

Capinnova exits investment

Posted on 21 March 2013 by Laxman  |  Email|Print

Capinnova Investment Bank, the Sharia-compliant investment banking arm of BBK, yesterday announced it has exited its investment in Oasis Mall, having earned 37 per cent total return on invested capital.
Oasis Mall is the largest retail mall in Muharraq and in June 2009 was the bank’s debut transaction in the retail sector. The development was worth $18.6 million………………………………………..Full Article: Source

BSE Institute, TASIS to launch course in Islamic banking

Posted on 21 March 2013 by Laxman  |  Email|Print

The BSE Institute, in association with Taqwaa Advisory and Shariah Investment Solutions (TASIS), has devised an online certification programme in `Islamic banking, finance and capital markets’.
Islamic banking and finance is fast-emerging as a specialised area of finance and has already made its presence in over 75 countries with assets under it close to USD 1.5 trillion, it said. The programme aims at improving financial inclusion through increased financial literacy, the release said, adding that improving the employability of the youth who want to make a career in overseas financial markets is another objective………………………………………..Full Article: Source

Abu Dhabi’s Al Hilal Bank to issue sukuk in Q3

Posted on 20 March 2013 by Laxman  |  Email|Print

Abu Dhabi government-owned Al Hilal Bank plans to issue a debut Islamic bond worth $500 million in the third quarter of this year to fund growth and diversify its balance sheet, its chief executive said on Tuesday.
“The sukuk was planned last year but we believe third quarter this year is the right time for our first Islamic bond,” Mohamed Berro told Reuters. “It’s a mix of getting some funding and benchmarking the bank in comparison to its peers on the debt market,” he said, adding that the bank expects to obtain a credit rating in the coming two or three months………………………………………..Full Article: Source

Turkiye Finans set for 100 mln lira sukuk issue-bankers

Posted on 20 March 2013 by Laxman  |  Email|Print

Turkish Islamic bank Turkiye Finans is in the final stage of preparing a sukuk, or Islamic bond, issue which is planned to have a volume of around 100 million lira ($55 million), bankers said.
The bank, majority owned by Saudi Arabia’s National Commercial Bank, could make the issue within several weeks if market conditions are right, bankers said. Is Investment is mandated for the issue. ($1 = 1.8129 Turkish liras)……………………………………….Full Article: Source

Vital role of Islamic banks highlighted

Posted on 20 March 2013 by Laxman  |  Email|Print

The Islamic banking system in Oman will be one of the most successful contemporary applications in recent times due to the nature of the Omani Muslim society, the existence of a central bank to provide the necessary technical and legislative environment for the growth of Islamic banking in the country and the capability of banks to restructure and raise financial products and services that are efficient and of good quality, the just concluded Islamic Finance and Banking conference affirmed.
Oman’s second Islamic Finance and Banking Conference called upon Islamic banks to play an important and vital role, especially in supporting productive areas through enhancing growth opportunities, particularly the small and medium enterprises and helping to stimulate capitals………………………………………..Full Article: Source

IDB Group’s deal boosts Indonesia role as key hub

Posted on 20 March 2013 by Laxman  |  Email|Print

Indonesia and the Islamic Development Bank (IDB) Group have signed an agreement for the establishment of the IDB Group Country Gateway Office in Indonesia as continuous strategic partnership between the bank and Indonesia.
The strategic bilateral relations have been transformed into actions through the signing of agreements between IDB Group private sector arm, The Islamic Corporation for the Development of the Private Sector (ICD), with Indonesia’s private sectors on power and energy industry and micro, small and medium enterprises. Agus Martowardojo, Indonesian finance minister, and Ahmad Mohamed Ali, president of the IDB Group, signed the agreement………………………………………..Full Article: Source

Kuwait parliament passes in principle controversial law to bail out debtors

Posted on 20 March 2013 by Laxman  |  Email|Print

Kuwait’s parliament on Tuesday passed in principle a bill that requires the government to buy billions of dollars of bank loans owed by citizens and reschedule them after waiving interest. Thirty-three MPs voted for the law, three opposed it while 20 members including all cabinet ministers present abstained.
To become effective, the law must pass another round of voting in parliament in the coming few weeks, approved by the government and then signed into legislation by the ruler of the oil-rich Gulf state………………………………………..Full Article: Source

India: Re-imagining Islamic banking

Posted on 19 March 2013 by Laxman  |  Email|Print

For now, the RBI has ruled out the possibility of Islamic banking in India unless existing laws are amended. But worldwide, Islamic banking is one of the fastest growing financial sectors with current global Shariah-compliant banking assets estimated at $1,166 billion, up from $1,086 billion in 2011.
Since the launch of the first Islamic bank in the 60s, the model has gained a lot of traction in countries with significant Muslim communities. But the UK, with a Muslim community representing 3 percent of the population, is ranked ninth globally with Shariah-compliant assets of $19 billion that surpass even predominantly Muslim countries like Pakistan, Bangladesh, Turkey and Egypt………………………………………..Full Article: Source

Islamic banking could become available in India

Posted on 19 March 2013 by Laxman  |  Email|Print

Islamic banking, which follows Sharia requirements and does not allow interest to be charged, could be introduced as an option in India, officials there say. The ruling coalition, led by the Congress Party, has made “financial inclusion” a key item on its agenda.
Many of India’s 177 million Muslims, who constitute the nation’s largest and most influential minority, are outside the banking system, and the authorities would like to change this situation………………………………………..Full Article: Source

Assets of Qatari Islamic banks soar to QR195bln

Posted on 19 March 2013 by Laxman  |  Email|Print

The assets of Islamic banks in Qatar rose to QR195bn at the end of 2012 compared to QR8.8bn 10 years ago, HE the Governor of the Qatar Central Bank (QCB) Sheikh Abdullah bin Soud al-Thani has said. The central bank governor said the assets of Islamic banks represented 23.8% the total assets of the banking sector, up from 14% back in 2002.
Deposits in Islamic banks represented 26.6% of the deposits in the banking sector, he said. Islamic banks have a total of QR121.6bn in deposits. Profits of Islamic banks jumped to QR3.8bn during the same period, Sheikh Abdullah added………………………………………..Full Article: Source

QFIB re-brands as Qatar First Bank

Posted on 19 March 2013 by Laxman  |  Email|Print

Qatar First Investment Bank (QFIB), the country’s first independent Shariah-compliant bank regulated by QFC Regulatory Authority, has re-branded itself and announced that it has changed its name to Qatar First Bank (QFB). QFIB’s new identity was revealed at a reception attended by top government officials, CEOs of leading Qatari Institutions and family businesses; shareholders and leading business minds.
The management’s decision to re-brand the bank is followed by its upgrade to a Category 5 license back in 2010, which would allow the bank to broaden its product offering. The decision also reflects the bank’s strategic evolution of its business model………………………………………..Full Article: Source

Bank Nizwa open to invest 75pct of its net worth in foreign instruments: CBO

Posted on 19 March 2013 by Laxman  |  Email|Print

CBO has allowed Bank Nizwa to invest up to 75 per cent of its net worth in Islamic instruments outside Oman for the first six months. As the sultanate is a new entrant into Islamic banking it does not have Islamic instruments like sukuk or other short-term liquidity management tools in which Islamic banks can invest their excess liquidity.
When asked about the extent to which Islamic banks and windows are allowed to invest excess liquidity outside Oman, H E Hamood Sangour al Zadjali, executive president of CBO, said, “We are according some flexibility to banks to invest some of their excess liquidity in Islamic instruments outside Oman.”……………………………………….Full Article: Source

Future of Islamic banking promising, says Shihab

Posted on 19 March 2013 by Laxman  |  Email|Print

Islamic banking is making steady progress in the Sultanate since the promulgation of the Royal Decree No. 69/2012. It has a promising future, said HH Sayyid Shihab Bin Tariq Al Said, His Majesty’s Adviser.
Although the Islamic banking industry is still in the initial stage, it has resulted in remarkable activity in the banking sector, said CBO Executive President HE Hamoud Bin Sangour Al Zadjali. It has forced many licensed commercial banks to increase their capitals to open independent Islamic windows to operate alongside with the two licensed Islamic banks, he said………………………………………..Full Article: Source

Affin Islamic sees strong growth

Posted on 19 March 2013 by Laxman  |  Email|Print

Affin Islamic Bank targets its financing segment to expand by between 10 per cent and 15 per cent this year, compared with 17 per cent last year. Its chief executive officer Kamarul Ariffin Mohd Jamil said the growth last year was in tandem with the robust performance of the country’s Islamic banking industry.
Last year, Affin Islamic’s pre-tax profit was RM106.4 million, which translated to a 42.1 per cent growth. Kamarul said the strong growth of Islamic finance was not limited to Malaysia, but covers the region and Affin Islamic is “always keen to expand regionally”………………………………………..Full Article: Source

Agrobank to fully implement Islamic banking by 2015

Posted on 19 March 2013 by Laxman  |  Email|Print

Agrobank plans to fully implement Islamic banking by 2015 as part of its transformation programme, with all its existing financing products and deposits to be changed to syariah-compliant products.
“This will contribute to the growth of domestic Islamic banking and at the same time encourage ethical banking practices,” president and CEO Wan Mohd Fadzmi Wan Othman said at the presentation of the bank’s zakat contribution of RM30,000 by Deputy Finance Minister Datuk Dr Awang Adek Hussin here today to 300 eligible recipients in the district including orphans………………………………………..Full Article: Source

Al Hilal Bank to issue Dh1.8bln sukuk in Q2/Q3 of 2013

Posted on 19 March 2013 by Laxman  |  Email|Print

Al Hilal Bank is likely to issue Dh1.8 billion ($500 million) sukuk (Islamic bond) in Q2 or Q3 of 2013, Mohammad Berro, CEO of Al HIlal Bank, told Gulf News. “We will be issuing suku worth $500 million and most probably in Q2 or Q3 of 2013,” said Berro.
He said that the bank, wholly owned by the Abu Dhabi Investment Council, an investment arm of the government of Abu Dhabi, has 11 per cent of the Islamic finance market share in the UAE………………………………………..Full Article: Source

Saudi Electric chooses banks for Sukuk

Posted on 19 March 2013 by Laxman  |  Email|Print

The Gulf region’s largest utility company, Saudi Electricity Co has chosen two banks to schedule meetings with fixed income investors from Europe and North America for possible debt agreements. The banks chosen were Deutsche Bank and HSBC Holdings.
The meetings would be considered as road shows, with the first to be held on March 19 in Los Angeles, CA and would end in London, UK by March 25 of this year. After these road shows, a dollar denominated bond issue would then follow depending on market conditions………………………………………..Full Article: Source

Iran holds 42.7% of total global Islamic banking assets

Posted on 18 March 2013 by Laxman  |  Email|Print

KFH-Research issued a report that stated that Iran’s Islamic banking assets contributed 42.7% of the total global Islamic banking assets in 2012, followed by PGCC (34.1%) and Malaysia (10.0%).
KFH Research Ltd is the world’s first Islamic investment research arm to be established by an Islamic Bank. A direct subsidiary of Kuwait Finance House, KFH Research was established in 2007, comprising of industry professionals and star research analysts with broad experience in Islamic finance & global markets. The report stated that total assets of Islamic banking in the PGCC region is 34% of assets of Islamic banks worldwide………………………………………..Full Article: Source

QCB: Assets of Islamic banks reach QR195bln

Posted on 18 March 2013 by Laxman  |  Email|Print

The assets of Islamic banks in Qatar were QR195bn at the end of 2012 compared to QR8.8bn 10 years ago, Governor of the Qatar Central Bank (QCB) Sheikh Abdullah bin Soud Al Thani said.
The governor of QCB said the assets of Islamic banking represent 23.8 percent of the assets of the entire banking sector, up from 14 percent back in 2002. Deposits in Islamic banks represent 26.6 percent of the deposits in the banking sector. Islamic banks have a total of QR121.6bn in deposits. Profits of Islamic banks jumped to QR3.8bn during the same period………………………………………..Full Article: Source

Morocco bank to set up central Shariah board

Posted on 18 March 2013 by Laxman  |  Email|Print

Morocco’s central bank has started talks with a body of Islamic scholars on establishing a central Sharia board to oversee the country’s fledgling Islamic finance industry, a central bank official said.
The board, composed of scholars and financial experts, would rule on whether instruments and activities complied with Sharia principles. Its creation would be a step towards establishing full-fledged Islamic banks in Morocco. The government plans to submit to parliament a bill regulating Islamic banks, which will be called participative banks under the legislation. Parliament’s vote is expected by the last week of April, sources said………………………………………..Full Article: Source

No plan to allow foreign Islamic banks for time being, says CBO

Posted on 18 March 2013 by Laxman  |  Email|Print

Central Bank of Oman (CBO) does not plan to allow foreign Islamic banks to set up operations in the sultanate for the time being as it assess the market size and demand for the next two to three years.
H E Hamood Sangour al Zadjali, executive president of CBO, said, “Foreign banks have shown some interest in setting up Islamic banking operations in the sultanate, but we will first give opportunity to local banks and see how the market develops. Accordingly, we will decide whether we need to expand the number of Islamic banking units or not.”……………………………………….Full Article: Source

Khaleeji Commercial Bank offers optimum Personal Finance solutions for 2013

Posted on 18 March 2013 by Laxman  |  Email|Print

Khaleeji Commercial Bank (KHCB), one of Bahrain’s fast growing Islamic retail banks has announced the launch of their Personal Finance campaign for 2013. The campaign comes as part of KHCB’s strategy to continuously enhance its products and services to offer customers the easiest financial solutions. A fully Shari’ah compliant financing scheme, KHCB’s Personal Financing solutions enable customers to avail finance up to BD200,000 at a most competitive profit rate and approval within 24 hours of application submission and they can also enjoy a grace period of 90 days.
Commenting on the launch of their Personal Finance campaign, Mr. Fuad Taqi, Deputy General Manager - Commercial Banking of KHCB said, “We at Khaleeji Commercial Bank aim to offer our customers the utmost in value and benefit through our consumer finance products. Our Personal Financing solutions have been designed to provide our customers with fast, fair and affordable financing for all their needs.” (Press Release)

Bank Nizwa gets relaxation in overseas investment ceiling

Posted on 18 March 2013 by Laxman  |  Email|Print

Bank Nizwa, the Sultanate’s first Islamic bank, has got a sizable relaxation in deploying funds in overseas markets for the initial one year. The banking regulator Central Bank of Oman (CBO) has allowed Bank Nizwa to invest up to 75 per cent of the bank’s net worth in foreign currency-denominated assets in the first six months, up to 50 per cent in the subsequent six months, which is against the normal 40 per cent ceiling for banks in Oman, Hamoud bin Sangour Al Zadjali, Executive President of the CBO, said.
“Thereafter, the bank has to bring down the maximum ceiling to 40 per cent. At the moment, it is available to only Bank Nizwa and not (extended to) other banks, which have window operations,” added the CBO chief………………………………………..Full Article: Source

Malaysia: Exim Bank targets RM3bln sukuk for global market

Posted on 15 March 2013 by Laxman  |  Email|Print

Government-owned Export-Import Bank of Malaysia Bhd (Exim Bank) is looking at the potential of arranging a US$1 billion (RM3.1 billion) sukuk to be made available in the global market in its effort to help local companies do business overseas.
Its managing director/CEO Adissadikin Ali said the bank aimed to raise funding based on three objectives: sources of fund should match users of fund in terms of tenure, foreign exchange neutral and the right pricing……………………………………Full Article: Source

Sharjah Islamic Bank achieves net profit of Dhs272mln in 2012

Posted on 15 March 2013 by Laxman  |  Email|Print

Sharjah Islamic Bank’s General Assembly hailed the significant role played by His Highness Sheikh Sultan bin Mohammed bin Sultan Al Qasimi, Chairman of Sharjah Islamic Bank, during his 18 year tenure as a Chairman since 1995 and accepted the apology of His Highness for being unable to continue as a Chairman of Sharjah Islamic Bank.
The bank’s General Assembly also approved the financial results for the fiscal year ended December 31, 2012, and approved the Board’s proposal of distributing 6% cash dividends, amounting Dhs145.5bn. This statement was made during 37th meeting of the General Assembly, which was held at the Sharjah Chamber of Commerce and Industry’s headquarters to present the annual report and most important financial results of 2012……………………………………Full Article: Source

Bahrain Islamic banking assets up 13pct

Posted on 15 March 2013 by Laxman  |  Email|Print

The total assets of Islamic banks in Bahrain have increased 13 per cent at the end of last year – up from 4 per cent in 2003, said Islamic Banks and Financial Institutions general council secretary general Dr Omar Al Hafiz.
The figures were released by the Central Bank of Bahrain on Wednesday. According to Ernst and Young’s ‘World Islamic Banking Competitiveness Report 2013′ released last year on the sidelines of the World Islamic Banking Conference, the Kingdom’s Islamic asset market share amounted to 26.9 per cent with $13 billion assets……………………………………Full Article: Source

BIMB-Dubai Financial Group talks may have stalled

Posted on 15 March 2013 by Laxman  |  Email|Print

Talks between BIMB Holdings Bhd and the Dubai Financial Group (DFG) over the latter’s 30.5% stake in Bank Islam Malaysia Bhd have stalled, banking sources said.
This was because a long-awaited plan by BIMB to transfer its listing status to Bank Islam was nearing fruition, a prospect DFG found more attractive than hiving off its interest to pare down debts, people familiar with the matter told StarBiz. Bank Negara had given BIMB and DFG until March 31 to conclude negotiations on Bank Islam……………………………………Full Article: Source

Pakistan: Islamic banks face high NPFs

Posted on 15 March 2013 by Laxman  |  Email|Print

Both the assets and deposits of the Islamic banks showed positive growth but the rise of non-performing financing diluted the achievements during the third quarter of the calendar 2012, said the Islamic Banking Bulletin issued by the State Bank on Wednesday.
“During the quarter under review, non-performing financing (NPF) of Islamic banking industry continued to increase and reached Rs18.9 billion indicating quarterly (QoQ) growth of 3 per cent,” said the report. The rising trend of NPFs was mainly contributed by the category of “Loss” that reached Rs13.3 billion during the quarter under review; more than 70 per cent of overall NPFs, added the report……………………………………Full Article: Source

Turkey: Sukuks set to diversify bank funding

Posted on 14 March 2013 by Laxman  |  Email|Print

A strong performance from Turkey’s banks last year produced a significant rise in total assets and an increase in equity capital, generating impressive growth across the industry. Turkish banks also continued to strengthen their position on the international stage by further diversifying their services, with a number of financial institutions extending their reach into the growing Islamic financial services segment.
The Banking Regulation and Supervision Agency (Bankacılık Düzenleme ve Denetleme Kurumu, BDDK) announced on February 13 that the sector grew 12.6% in 2012. Total assets reached TL1.3bn ($0.72bn), driven largely by growth in the second half of the year, according to Mükim Öztekin, president of the BDDK…………………………………….Full Article: Source

Mashreq Al Islami unveils Islamic Gold

Posted on 14 March 2013 by Laxman  |  Email|Print

Mashreq Al Islami , the Islamic banking division of Mashreq, one of the UAE’s leading financial institutions announced the official launch of Islamic Gold proposition. The new product underlines the Bank’s commitment towards its customers and continuous product innovation. The Premium banking segment can now avail Sharia’h Compliant Islamic Gold offering with customized financial solutions.
The launch event was attended by customers and senior officials from the Bank to engage in an informative session. Mashreq representatives comprised Tooran Asif - Head of Personal Banking, Momin Hyat - Manager, Sharia’h Covernance & Compliance, Caetano Fernandes - Head of Mashreq Gold and Ali Moosa - Regional Manager Distribution…………………………………….Full Article: Source

Kuwait Finance House revamp plan includes a new CEO, creating separate investment banking unit

Posted on 14 March 2013 by Laxman  |  Email|Print

Kuwait Finance House (M) Bhd (KFH) is mulling over a restructuring exercise that will entail a change of chief executive and the creation of a separate investment banking division, sources said. The sources told StarBiz that KFH’s existing chief executive officer (CEO) Datuk Jamelah Jamaluddin had been chosen to head this new investment banking subsidiary, and thus, the search for a new CEO had been ongoing.
According to the sources, Datuk Seri Abdul Hamidy Abdul Hafiz, the chairman of Danajamin Nasional Bhd and Credit Guarantee Corp (M) Bhd, is a likely replacement. He is also a board member of KFH…………………………………….Full Article: Source

Turkey: Sukuks set to diversify bank funding

Posted on 13 March 2013 by Laxman  |  Email|Print

A strong performance from Turkey’s banks last year produced a significant rise in total assets and an increase in equity capital, generating impressive growth across the industry. Turkish banks also continued to strengthen their position on the international stage by further diversifying their services, with a number of financial institutions extending their reach into the growing Islamic financial services segment.
The Banking Regulation and Supervision Agency (Bankacılık Düzenleme ve Denetleme Kurumu, BDDK) announced on February 13 that the sector grew 12.6% in 2012. Total assets reached TL1.3bn ($0.72bn), driven largely by growth in the second half of the year, according to Mükim Öztekin, president of the BDDK………………………………………..Full Article: Source

IDB, Ecobank earmark EUR377mln for Iran’s water and wastewater projects

Posted on 13 March 2013 by Laxman  |  Email|Print

The Islamic Development Bank and the Ecobank have allocated €377 million to Iran’s water and wastewater projects, IRNA quoted Iranian water and wastewater company official Hossein Bonakdari as saying.
The IDB and the Ecobank allocated €342 million and €35 million, respectively, he noted. He added that 8.75 trillion rials (about $714 million) worth of bonds were issued and a major portion of which were sold to finance water supply projects………………………………………..Full Article: Source

DIB lures with sukuk to avert Moody’s cut

Posted on 12 March 2013 by Laxman  |  Email|Print

Dubai Islamic Bank (DIB) may pay more than twice the Arabian Gulf average on Sharia-compliant debt for its first perpetual sukuk as the lender seeks to avert a downgrade by Moody’s Investors Service.
The United Arab Emirates’ biggest Islamic lender will probably pay between 6.5 per cent and 7.14 per cent for the sukuk to boost Tier 1 capital, the core resources needed to cushion against losses, according to three analysts surveyed by Bloomberg. This compares with a 2.65 per cent average yield on Islamic bonds issued by financial institutions in the Gulf Cooperation Council (GCC), according to HSBC/Nasdaq Dubai indexes………………………………………..Full Article: Source

Qatar says Islamic bank to be set up with IDB “soon”

Posted on 12 March 2013 by Laxman  |  Email|Print

Qatar expects to go ahead soon with its plan to establish a big, international Islamic bank, Finance Minister Youssef Kamal said on Monday. Last April the Qatari government signed a memorandum of understanding with the Jeddah-based Islamic Development Bank, a multilateral lender, and Saudi Arabia’s Dallah Albaraka Group to establish a bank with initial capital of $1 billion.
Asked on Monday when the bank would be set up, Kamal replied: “Soon.” He did not elaborate on the timing, ownership or other aspects of the new institution………………………………………..Full Article: Source

Kuwait’s KFH consolidates all its real estate investment activities to one entity, KFH Real Estate

Posted on 12 March 2013 by Laxman  |  Email|Print

Kuwait Finance House (KFH) the world’s leading Islamic bank, has taken a major step today in its strategic transformation program with the announcement of KFH Real Estate company, a dedicated fully owned investment vehicle for the real estate asset class.
Shaheen Al-Ghanim, KFH ’s General Manager of International Banking and Acting Chief Investment Officer highlighted KFH ’s investment vision and insight through the announcement of KFH Real Estate; emphasizing on the importance of this announcement, as it marks a new beginning for KFH and its potential contribution to the global Islamic financial services industry. (Press Release)

Malaysia: Islamic banking shines

Posted on 12 March 2013 by Laxman  |  Email|Print

Malaysia proves its worth as a global model for a modern and dynamic industry. Malaysia has succeeded in developing a vibrant and modern Islamic banking and financial industry over the last three decades.
The Islamic Banking Act, which came into force in 1983, had paved the way for the nation to develop a vibrant and modern Islamic banking and financial industry. Initially, the industry served as an alternative channel for Muslims to perform banking and financial transactions in accordance with Islamic practices, and thus, avoid practices that have elements of oppression that are prohibited by Islam………………………………………..Full Article: Source

The exciting future of non-interest banking in Nigeria

Posted on 12 March 2013 by Laxman  |  Email|Print

For so many reasons, Islamic banking is growing at a fast pace around the world. It is asserting itself as a key player in the global financial system. In 2011, for instance, Islamic banking worldwide assets grew by 19 percent to $1.3 trillion. Altogether, Islamic banking worldwide increased profit-making by 15 percent during that period.
The first private Islamic bank, the Dubai Islamic Bank, was set up in 1975 by a group of Muslim businessmen from several countries. Two more private banks were founded in 1977 under the name of Faisal Islamic Bank in Egypt and Sudan. In the same year, the Kuwaiti government set up the Kuwait Finance House. Since then, Islamic banking has grown steadily………………………………………..Full Article: Source

Investment Dar to sell stake in bank

Posted on 12 March 2013 by Laxman  |  Email|Print

Investment Dar, the controlling shareholder in British luxury car maker Aston Martin, on Sunday agreed to sell its stake in a loss-making Bahraini bank for $92m as the Kuwaiti firm restructures debt.
Investment Dar accepted an offer from National Bank of Bahrain and a state-run Social Insurance Organisation Asset Management, a unit of pension fund Social Insurance Organisation, to sell its 51.6% stake, or 484-million shares, in Bahrain Islamic Bank at 72 fils apiece, according to statements posted on the Bahrain Bourse………………………………………..Full Article: Source

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