Posted on 07 February 2011 by Laxman | Email|Print
From Reuters: Afghanistan’s central bank expects an Islamic banking law to be enacted by September, drawing billions in deposits from citizens wary of the conventional banking system, a senior official said.
The central bank’s sharia board will meet Sunday to finalize the law, said Muhammed Qaseem Rahimi, director general of the central bank’s Financial Supervision Department. It will then go to the Justice Ministry and parliament for approval………………………………………Full Article: Source
Posted on 07 February 2011 by Laxman | Email|Print
From Zawya Dow Jones: Qatar’s central bank has ordered conventional lenders operating in the gas-rich Gulf Arab state to shut down Islamic finance activities by the end of 2011, two bankers familiar with the situation said Sunday, in a move that could curb an important source of income for many banks.
The central bank earlier this month sent a memorandum to non-Islamic lenders operating in Qatar asking them to close their Islamic units without providing a reason for the decision, according to two senior banking officials, who reviewed the document……………………………………….Full Article: Source
Posted on 07 February 2011 by Laxman | Email|Print
From Arabnews.com: The Qatar Central Bank (QCB) has reportedly issued a directive requiring the country’s conventional banks, which have opened Islamic banking windows to close them down by the end of 2011.
The move is ostensibly because the Qatari regulator feels that there is rampant co-mingling of conventional and Islamic funds, which consequentially comprise the Shariah compliance of the Islamic banking windows……………………………………….Full Article: Source
Posted on 07 February 2011 by Laxman | Email|Print
From Reuters: Qatar’s Islamic banks surged on Sunday after the Gulf state’s central bank instructed conventional lenders to stop their Islamic operations. Most regional markets gained as fears over Egypt unrest.
Qatar Islamic Bank, Qatar International Islamic Bank and Masraf Al Rayan all rose more than 9 percent. A fourth Islamic lender, Barwa Bank, is unlisted. The central bank issued a circular over the weekend, saying “it has been decided to terminate the activities of the Islamic finance services” of conventional banks……………………………………….Full Article: Source
Posted on 07 February 2011 by Laxman | Email|Print
From Thenational.ae: Qatari Islamic banks are to have less competition and therefore, the thinking goes, more profits. Shares in Masraf Al Rayan, the country’s second-largest Islamic bank, climbed 10 per cent yesterday after it emerged the Qatar Central Bank is terminating the Islamic activities of conventional lenders.
The shares closed at 23.10 rials yesterday, the highest since June 2008. “The reaction to the share price has been quite strong,” said Tarik el Mejjad, the vice president of banking research at Nomura in London……………………………………….Full Article: Source
Posted on 07 February 2011 by Laxman | Email|Print
From Zawya.com: The recent decision of the High Court of India’s Kerala state ratifying the interest-free banking system compliant with the Sharia law in the state has been welcomed by all concerned hailing it as “historic” in the state’s history.
When the first bank under this scheme sees the light of the day, it will be yet another landmark in the banking practice of the state and will be yet another important step towards enhancement of mutual investments between the foreign countries including the Sultanate of Oman and India, according to Dr P Mohammed Ali, (pictured) Galfar, and the Chairman of Al Baraka Financial Services……………………………………….Full Article: Source
Posted on 07 February 2011 by Laxman | Email|Print
From IANS: Kerala Finance Minister Thomas Issac Friday expressed happiness over a court verdict giving the green signal to Al Barakah Company to start an institution on Islamic banking principles. The company has planned the venture along with the Kerala State Industrial Development Corp (KSIDC) as an investor.
‘This is a welcome judgment and the KSIDC will now start work on the required sanctions,’ said Isaac……………………………………….Full Article: Source
Posted on 07 February 2011 by Laxman | Email|Print
From Gulf-times.com: Kerala is fast tracking the Islamic finance company hoping to finance major infrastructure projects after the state high court cleared the proposal last week.
The projects include roads, bridges, flyovers, power, water supply and transport, industrial and information technology, tourism, ports, airports, railways and mass transportation and inland waterways across the southern state……………………………………….Full Article: Source
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From Indiatimes.com: When the Kerala High Court on Thursday approved the concept of Islamic non-banking finance company operations, the cheers were apparently far more in the Persian Gulf countries than at home. Gulf-based NRIs (non-resident Indians) are learnt to be willing to bring in well over Rs 10,000 crore for infrastructure projects in the state, on Shariah principles.
Their dreams are poised for realization, with the high court dismissing writ petitions filed by Subramaniam Swamy and RV Babu against the move of the Kerala State Industrial Development Corporation to take an 11% stake in Al Barakah Financial Services , a venture that operates on Shariah principles……………………………………….Full Article: Source
Posted on 07 February 2011 by Laxman | Email|Print
From Deccanchronicle.com: Given the times we live in, it is not surprising that an effort to establish a financial institution run on Sharia or Islamic principles should arouse anxiety, not curiosity. Thus, a decision of the Kerala government to give sanction to the Kerala State Industrial Development Corporation to start a non-banking finance company based on Islamic principles has been challenged in the Kerala High Court.
It is to the credit of the judiciary that it upheld the government’s decision. The court rightly held that the joint venture with government participation was to be run in accordance with Islamic principles as well as the law of the land……………………………………….Full Article: Source
Posted on 07 February 2011 by Laxman | Email|Print
From Tradearabia.com: Ahli United Bank (AUB) has extended the final maturity date of its syndicated term loan facility by six months to April 2012, a statement from one of the bookrunners said.
The loan dated September 5, 2008 was set to mature in October 2011. The extension was initially targeted at $500 million, but raised to $618 million through an extension process, said a statement from Lloyds TSB Bank on Thursday……………………………………….Full Article: Source
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From 234next.com: Last month, the Central Bank of Nigeria (CBN) released or Islamic banking in Nigeria. This is a system of banking or banking activity that is consistent with the principles of the Islamic law (Sharia).
Its basic principle is the sharing of profit and loss and the prohibition of interest and also excludes usury and investments in businesses that deal on arms and ammunitions, alcohol or pork, or media business that produce gossip columns or pornography, which are contrary to Islamic values……………………………………….Full Article: Source
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From Istockanalyst.com: The Jeddah-based Islamic Development Bank (IDB) has taken a 10-percent stake in the first commercial Islamic bank in Sri Lanka, which is to be opened shortly in the island, a senior official from the Amana Bank Limited in Colombo said.
Amana Bank Limited, which obtained the provisional approval license from the central bank last year to become a bank, has got the green light from the island’s Finance Ministry to operate as a commercial bank in the country……………………………………….Full Article: Source
Posted on 07 February 2011 by Laxman | Email|Print
From Arabnews.com: This year will be a difficult year for Turkish banking — both conventional and participation (Islamic) banking — although the latter will continue to grow in terms of market share of the total banking sector, says Avsar Sungurlu, assistant managing director of BMD Securities, one of the top fund managers and investment advisers serving the participation banking sector in Turkey.
“Compared to international banks, Turkish banks had very strong financials and profits in previous years. But as the interest rates continue to come down in Turkey, it becomes harder to get deposits, so banks try to find new areas of interest……………………………………….Full Article: Source
Posted on 07 February 2011 by Laxman | Email|Print
From Arabnews.com: Asset and fund managers have a new option in choosing a mutual or equity fund structure in UCITS IV (Undertakings for Collective Investments in Transferable Securities) which according to prominent finance industry lawyers is ideally suited for a new generation of Shariah-compliant unit trusts, mutual funds and equity funds and products.
UCITS IV is a European Union initiative under the Lamfalussy Process. The European Parliament and the Council of the EU adopted the new European UCITS IV directive known as UCITS (DIR 2009/65/EC), on June 22, 2009. EU member States must transpose the directive into national legislation by July 1, 2011……………………………………….Full Article: Source
Posted on 07 February 2011 by Laxman | Email|Print
From WAM: Abu Dhabi Islamic Bank, today announced the launch of its 97 per cent capital protected BRIC Currencies Notes that provides an opportunity to small or large investors to invest in four major emerging economies in the world. (BRIC: Brazil, Russia, India, China).
Investors can get a return of up to 22 per cent at maturity via the opportunity to diversify their portfolio and invest in BRIC currencies for two years……………………………………….Full Article: Source
Posted on 07 February 2011 by Laxman | Email|Print
From Arabianbusiness.com: Shareholders of Bank Muscat, Oman’s largest lender by market value, on Sunday approved a new $800m bond programme, allowing the company to tap international bond markets in the future.
Chief Executive Abdulrazak Ali Issa said after the shareholders meeting that no date for a bond issue had yet been set but that any potential issue could be in different currencies and sizes……………………………………….Full Article: Source
Posted on 07 February 2011 by Laxman | Email|Print
From Reuters: Indonesia’s finance ministry has set the coupon for its three-year retail Islamic bonds or sukuk at 8.15 percent, the debt office said in a statement on Friday.
The coupon will be paid on a monthly basis and the sukuk can be bought only by Indonesian citizens with a minimum purchase of 5 million rupiah ($554,262). ($1 = 9,021 rupiah)………………………………………Full Article: Source
Posted on 07 February 2011 by Laxman | Email|Print
From Saudigazette.com.sa: Saudi Arabia will lead a rebound in Islamic loans from a five-year low in 2011 as accelerating economic growth and development spending boost financing needs, Banque Saudi Fransi and Standard Chartered said.
Demand for Islamic loans and Sukuk will climb this year, with borrowers tapping the financial markets to fund expansion, said John Sfakianakis, chief economist at Banque Saudi Fransi……………………………………….Full Article: Source
Posted on 07 February 2011 by Laxman | Email|Print
From Brudirect.com: The signing of the Takaful (Islamic insurance) Scheme agreement between the Department of Syariah Affairs, Ministry of Religious Affairs and Takaful Brunei Darussalam took place yesterday at Takaful Brunei’s headquarters in the capital.
Witnessing the signing ceremony as the chief guest was Permanent Secretary at Ministry of Religious Affairs, Awg Hj Abd Aziz bin OKML Awg Hj Mohd Yussof……………………………………….Full Article: Source
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