Posted on 27 June 2012 by Laxman | Email|Print
Bank Negara Malaysia (BNM) said applications for Islamic mega bank licences are market-driven and private sector-led. “Those entities exploring the possibility of participating as an investor will determine their own course of action based on their assessment of the business viability of the investment,” it said.
Stringent criteria and assessments by BNM will be applied on prospective investors and the licensee as required by the law, it said. BNM said entities applying for Islamic mega bank licences are required to meet all the existing rules and regulations set by the central bank………………………………………..Full Article: Source
Posted on 27 June 2012 by Laxman | Email|Print
HSBC Bank Plc, which surpassed CIMB Group Holdings Bhd as the top Islamic bond arranger this year after dominating sales in the Persian Gulf, is predicting lower borrowing costs will drive record issuance in 2012.
Europe’s largest lender, the sole underwriter of Jeddah, Saudi Arabia-based General Authority of Civil Aviation’s US$4bil sukuk, handled 46 offerings worth US$7.2bil in 2012, a 35% market share, according to data compiled by Bloomberg………………………………………..Full Article: Source
Posted on 27 June 2012 by Laxman | Email|Print
Olayan Group, one of the largest conglomerates in Saudi Arabia, has concluded its maiden issue of an Islamic bond, or sukuk, two sources with knowledge of the matter said on Tuesday.
It is one of a number of Saudi entities that have priced their first local currency sukuk this year as interest in the country’s debt market grows on the back of high investor liquidity and a desire to diversify funding sources away from bank loans………………………………………..Full Article: Source
Posted on 27 June 2012 by Laxman | Email|Print
Bahrain, the Gulf Arab state hit by ongoing social unrest, plans to issue a benchmark-sized 10-year dollar bond this week, lead arrangers said, after testing investor appetite in roadshows that conclude on Tuesday.
Initial price guidance for the issue, which appears to be a single-tranche deal, was at a spread of 462.5 basis points over midswaps. At current swap prices, that equates to a coupon of 6.375 per cent; 10-year midswaps were quoted at 1.75 per cent on Tuesday………………………………………..Full Article: Source
Posted on 27 June 2012 by Laxman | Email|Print
Fitch Ratings-London/Paris-26 June 2012: Fitch Ratings has rated Islamic Development Bank’s (IDB) issuance of USD800m Trust Certificates due 26 June 2017 issued by IDB Trust Service Limited, under its USD6.5bn Trust Certificate Issuance Programme (TCIP) at ‘AAA’.
The TCIP benefits from a guarantee provided by the IDB; therefore, its rating is in line with IDB’s Long-Term Issuer Default Rating (IDR) of ‘AAA’ with a Stable Outlook………………………………………..Full Article: Source
Posted on 27 June 2012 by Laxman | Email|Print
Finance Minister Houcine Dimassi announced, on Monday in Hammamet, the start of a comprehensive legal system to rule Islamic funding, including a solidarity-based Ettakaful insurance system.
Opening works of the Eleventh Carthage Symposium on “Capacity of Arab Insurance and Re-insurance Industry to Face up to New and Important Risks,” Mr. Dimassi said that Islamic financing had proved its efficiency while the traditional finance system had undergone regression, notably in the United States of America and Europe, as a result of the sovereign credits………………………………………..Full Article: Source
Posted on 27 June 2012 by Laxman | Email|Print
Islamic finance has a role to assume in a new world economic model, as the existing model, is unable to balance growth and social responsibility, says an economist.
Graeme Maxton said the fundamental principles underlying in the system was that charging interest on loans or using others as a source of profit was something not allowed………………………………………..Full Article: Source
Posted on 27 June 2012 by Laxman | Email|Print
Leading executives at global institution Standard Chartered say that Shariah-compliant banks are on track to boast around half of the region’s banking assets by 2020 - on the back of surging growth which has seen the industry expand by 30 per cent in the region in just two years.
Potential revenues from Islamic banking are absolutely huge, according to Khalid Elgibaly, head of consumer banking in the region at Standard Chartered. Way of winning client trust and encouraging loyalty are an important factor for investors regardless of their religion, ethnicity, and background and aim to produce a “feel good” factor for the investor………………………………………..Full Article: Source
Posted on 27 June 2012 by Laxman | Email|Print
Deloitte’s Middle East Islamic Finance Knowledge Center (IFKC) report, Empowering Risk Intelligence in Islamic Finance, finds the total of Saudi’s Arabia Islamic Finance Assets, valued at $94bn, represents 8.2% of total Global Islamic Finance assets.
“Greater pressure has been placed on financial institutions offering Islamic Financial services to galvanise risk exposure and governance capabilities,” commented Dr. Hatim El Tahir, director of the IFKC. “Global and regional jurisdictional regulatory reforms are continuing. How this regulation will affect the Islamic Finance sector and the role of IIFS in the economy is yet to be seen,” he added………………………………………..Full Article: Source
Posted on 27 June 2012 by Laxman | Email|Print
The former head of Absa ’s Islamic banking unit, Amman Muhammad, has joined rival First National Bank (FNB) and has pledged to make it dominant in Islamic banking in SA.
Mr Muhammad last week said his vision was also to spearhead FNB’s Islamic banking business in sub-Saharan Africa, targeting markets where SA’s third-largest bank already had operations or intended to expand into………………………………………..Full Article: Source
Posted on 27 June 2012 by Laxman | Email|Print
Governor Central Bank of Bahrain (CBB) and the representatives of the banking industry discussed the economic and banking situation in Bahrain and its impact on the performance of the national economy during the year.
The CBB and the Bahrain Association of Banks (BAB) held their second meeting of the year to discuss the developments of the financial services sector in the Kingdom of Bahrain………………………………………..Full Article: Source
Posted on 27 June 2012 by Laxman | Email|Print
The controversial plan by regulator Bank Negara Malaysia (BNM) to set up an Islamic mega bank using public funds could involve the purchase of an existing lender, Asian Finance Bank (AFB), say industry sources. The AFB is one of three foreign Islamic banks in Malaysia.
But perhaps likely to be more troubling than the use of public funds is a move to offer Islamic banking expert Professor Datuk Dr Rifaat Ahmed Abdel Karim and other “promoters” of the idea up to nine per cent of the shares in the super bank, which is to be capitalised at US$1 billion (RM3.2 billion)………………………………………..Full Article: Source
Posted on 27 June 2012 by Laxman | Email|Print
The National Insurance Commission (NAICOM), recently announced its plan to release the guidelines on Takaful or Islamic Insurance by the end of next month. Nnamdi Duru writes on the peculiarities of this highly specialised branch of insurance practice and the benefits.
The insurance regulator, National Insurance Commission (NAICOM) said it would soon put in place the necessary framework for the take-off of takaful insurance, a platform for the protection of lives and properties based on risk sharing in line with the principles and practice of Islam as against risk transfer as in conventional insurance………………………………………..Full Article: Source
Posted on 27 June 2012 by Laxman | Email|Print
Pos Malaysia has agreed an 80/20 joint venture deal with Bank Muamalat Malaysia to provide Shari’ah finance under the Ar-Rahnu system.
The new company Pos Ar-Rahnu will offer Islamic pawn broking services in Malaysia’s network of more than 700 post offices. Pos Malaysia has acquired Bright Emerald Sdn Bhd, through which the joint venture will operate, renamed Pos Ar-Rahnu. Three of the businesses four directors will be appointed by Pos Malaysia, the bank will provide the fourth………………………………………..Full Article: Source
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