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Moody's: Shariah-compliant #investment accounts at #Malaysian banks to continue growing

According to Moody's Investors Service, the growth of shariah-compliant investment accounts at Malaysian banks will remain strong over the next three to five years. Moody's Vice President, Simon Chen, said Malaysian banks have strong incentives to promote the growth of such investment accounts because they provide capital benefits. He added that concerns also exist over the untested state of loss-sharing mechanisms in the accounts. The robust growth of shariah-compliant investment accounts in Malaysia began in July 2015 following the implementation of the Islamic Financial Services Act 2013. By February 2017, these accounts had grown to RM74.2 billion, or 13%, of total banking system liabilities. On the question of risk, Moody's said that a significant loss event to test the resilience of this regime has yet to occur.

#Saudi readies debut dollar #sukuk with US risk disclosure

Saudi Arabia has included a disclosure on credit risk retention requirements in the prospectus of a debut dollar sukuk which is expected to issue this week and could total $10 billion. The disclosure to comply with the US Dodd-Frank Act has not been made for other sovereign sukuk issues. The US retention rule was set to align the interests of issuers of asset backed securities (ABS) with those of ABS investors by asking the sponsor of an ABS securitisation. Sukuk are generally asset-based, but in order to comply with the rules, Saudi Arabia will purchase at least 5% of the aggregate principal amount of each tranche it issues. Saudi Arabia began meeting investors on Sunday ahead of the deal, the second debt sale by the kingdom, which made its debut in the international debt markets last year with a record $17.5 billion bond.

Normes Charaïques #AAOIFI

La traduction en langue française de l’ensemble des standards de l’AAOIFI a été achevée. La première édition officielle en français des Normes Charaïques pour les institutions financières islamiques sera présentée le 12 avril 2017 à l’ouverture de la 15ème conférence annuelle de l’AAOIFI à Manama, Bahrain. Cette démarche s’inscrit dans le cadre des efforts de l’AAOIFI pour la diffusion de ses Shari’ah Standards, qui sont devenus la principale compilation de jugements de Fiqh contemporain dans le domaine de Fiqh al Mouamalat au niveau mondial. Eu égard à la taille des communautés francophones dans le monde, l’AAOIFI a entrepris de faire traduire ses Shari’ah Standards en français selon une méthodologie rigoureuse pour assurer une traduction une traduction fiable comportant plusieurs niveaux de révision, d’édition et d’assurance qualité.

Mizuho opens $300m Islamic #credit facility to Jeddah group

Mizuho Bank #Malaysia opened a $300 million credit facility to the Islamic Corporation for the Development of the Private Sector (ICD). The two-year deal will finance projects in the member countries of ICD. According to ICD Chief Executive Khaled Al Aboodi, the $300 million accounts for 24% of funding programs earmarked by ICD in 2017. He added that funds could be disbursed for hospitals in Gambia, manufacturing facilities in Tajikistan or trade finance in Maldives. For Mizuho Bank Malaysia, the deal marks its first cross-border bilateral Islamic facility based on the concept of Murabahah. The bank's deputy CEO, Shinichi Nishiyama, said lending to ICD will expose Mizuho Bank Malaysia indirectly to the markets in Islamic countries and they are looking forward to a long-term partnership with ICD.

Sovereign plans #sukuk blockbuster

Saudi Arabia is expected to raise several billion US dollar sukuk across five and 10-year tranches. The notes will be in a hybrid mudaraba-murahaba format, a structure in essence already trialled by Saudi Aramco for a riyal-denominated sukuk. The kingdom is rated A1 by Moody's and A+ by Fitch. The banks running the deal are BNP Paribas, Citigroup, Deutsche Bank, HSBC, JP Morgan and NCB Capital. The national oil company Saudi Aramco raised SR11.25bn riyals in order to diversify its revenues impacted by low international oil prices. The floating rate local currency sukuk has a seven-year maturity and offers 25bp over the six-month Saudi Arabian Interbank Offered Rate.

#Kuwait's Warba Bank boosts its #realestate investments portfolio & acquires a facility of KIA Motors in #UK

Warba Bank has recently purchased a newly constructed UK vehicle imports-exports facility strategically located next to Immingham port. The property is leased to KIA Motors UK for unbreakable lease term of 20 years. The facility has a capacity of over 15,550 cars and totalling 86.68 acres (35.08 hectares) of land. In addition, the site also includes a warehouse space of 63,515 ft.² (5,901 m²), facilitating distribution, refurbishment, valet, inspection, refuelling, offices and gatehouses. The site receives on average c.1,200 vehicles a week. KIA anticipate 100,000 UK car sales target by 2020. Warba Bank’s CEO, Shaheen Hamed Al Ghanem, said this acquisition was one of the best risks mitigated real estate investment of the bank, generating a steady and secured return from unbreakable long lease. He elaborated that the investment plan for 2017 is highly ambitious and the bank is looking for more international real estate investment opportunities in USA, UK and other continental European countries.

Wadi and Al Rajhi Bank announce new #partnership

Wadi.com, #Saudi Arabia's home-grown online shopping marketplace, announced a new strategic partnership with one of the kingdom's most trusted banks, Al Rajhi Bank.

New Islamic bank to appear in #Kazakhstan

Zaman Bank is expected to enter Kazakhstan's Islamic banking services market in near future. The news was announced by Nurlan Abdrakhmanov, director of the financial market methodology department of Kazakh National Bank. He noted that among all the products of Islamic banking, murabaha is in the greatest demand in Kazakhstan.

In the Trump era, one US Muslim #investor tries a louder voice

Bashar Qasem is the most outspoken voice among Muslim investors in the United States. He was the only Islamic financial representative among religious shareholder advocates who sent a letter in February to protest U.S. President Donald Trump’s travel ban. Qasem's Azzad Asset Management firm started its work in 2005, weighing in on issues like worker safety, climate change and lobbying disclosures. This direct advocacy will test whether U.S. Muslim investors will support the sort of faith-based shareholder activism common among other religious groups. Qasem's strategy appears to be helping to differentiate his firm from other asset management firms. Azzad's assets increased 11% in 2016 to US$487 million (£393 million) at year-end. Growth included US$5.7 million into the firm’s mutual funds, the third consecutive year of inflows.

#Iranian Banks' L/C Boom in Post-Sanctions Era

The Iranian Ministry of Economy has published the details of letters of credit (L/Cs) that Iranian banks allocated over the past few years. The country’s international trade picked up considerable pace when the sanctions against Iran were lifted. According to the ministry’s report, Bank Melli Iran allocated 154 letters of credit worth $42.71 million over a four-year period (2013-16). During 2013-16, Bank Keshavarzi opened 19,253 L/Cs worth over $10.5 billion. It also played an important role in issuing 21 bank guarantees valued at $15 million. Bank Mellat also issued 32 export guarantees worth $15.4 million and four import guarantees worth $13.5 million. Export Development Bank of Iran opened 550 L/Cs and issued more than 1,750 bank guarantees during 2013-15 to emerge as one of the main forces in the Iranian economy.

‘Jaiz Bank’s NPL within tolerable limits’

The Managing Director of Jaiz Bank, Hassan Usman, has assured that the bank’s loan profile is very healthy. Jaiz Bank, he noted, was not heavily or significantly exposed to the oil sector, but the bank’s exposure is to real estate. While justifying the listing of the bank’s shares in the Nigerian Stock Exchange (NSE), he said Jaiz Bank’s activities remain transparent and open. Jaiz Bank has challenges like any growing institution. One of such challenges has to do with perception, as many people thought it was a charity organization. Other challenges include the enabling environment like infrastructure for non-interest banking like liquidity instruments. Another challenge is the limited number of qualified trained manpower to manage Islamic banking. Inspite of these challenges, Jaiz Bank has proved itself to be sustainable. It has grown into a national franchise with branches in South and South West and is also opening more branches in other parts of the country.

Jaiz Bank anxious to invest massively in #Sukuk for infrastruture

In #Nigeria Jaiz Bank has accumulated funds and is now ready to massively invest in Sukuk to finance in specific infrastructure projects in the country. Managing Director Hassan Usman said that the bank, being an Islamic bank, could not invest in interests yielding instruments and therefore had to wait until Sukuk was ready. He added that there are off-shore funds held by those who share similar non-interests philosophy of Jaiz Bank which could be brought into the country. Usman said that from a capital base of N5 billion, the bank has grown its capital base to about N50 billion. From a deposit of N3. 5 billion, it has grown to about N60 billion. From the initial three branches as a Regional Bank, Jaiz Bank has grown into a National Bank with 30 branches across the nation.

#Malaysia’s Maybank Islamic looks to home markets to drive growth

Maybank Islamic is turning to its home markets for growth, in particularly Indonesia where it manages $2 billion worth of assets and is aiming to compete with domestic Islamic banks. According to CEO Mohamed Rafique Merican, the bank could grow beyond its core markets of Malaysia, Singapore and Indonesia, but expansion in other markets would be opportunistic. Indonesia remains a key market for the bank, after Malaysia which accounts for 90% of the bank's business. As part of the ASEAN banking integration framework (ABIF), Indonesia and Malaysia have agreed in August to give their banks greater access to each other's markets. The move would give Malaysia's Islamic banks a potential lead to tap into the world's biggest Muslim-majority country, and one that continues to restrict to foreign lenders.

Bitter #battle for #Sabana# Reit comes to head at April 28 EGM

It seem like the ongoing bitter battle between the managers of Sabana Shariah-compliant Reit and some disgruntled investors will come to a head at an extraordinary general meeting End of April which has been called at the behest of 66 unit holders who began a campaign against Sabana Real Estate Investment Management.
Reason was dissatisfaction with the Reit manager's lacklustre performance and 3 years of falling distributions per unit. At the EGM 4 resolutions will be tabled one of which ask for Sabana Real Estate Investment Management to be removed.

#Suriname #Islamic #bank selects #Kuwaiti technology #partner

Trustbank from Suriname is one step closer to open its doors to customers interested in Islamic banking products after it signed a new licensing deal with the Kuwaiti based software vendor, Path Solutions, to implement Islamic Banking and Investment System as a new core banking platform.
This is major thing for the Path Solutions, as it’s the company’s first Islamic core banking software deal in the Americas. The company won the deal as one of three shortlisted vendors besides Oracle FS, Temenos. Path Solutions won the deal because of ist Sharia compliance, product functionality and technological superiority.

Yielders #pioneering #Islamic #intech in the #UK

Yielders, a UK based equity crowdfunding provider, has just attained the first Islamic Banking certification and become the first FinTech firm in the West to do so. Yielders have developed something that looks pretty innovative, pragmatic and could prove tob e competitive in a low yield environment. Islamic banking has been around for more than 60 years. However, Sharia compliant Financial institutions only manage 1% of the global assets.

Head of #Islamic #finance body #IFSB to #retire

The secretary general of the IFSB will retire next week, according to a statement. Jaseem Ahmed will step down middle of April after leading the IFSB 6 years.
The process for the selection of a new secretary general has begun. Zahid ur Rehman Khokher acting as interim secretary general.

Want to #meet the #SDGs? #Invest in longitudinal data

To meet the SDGs by 2030, more data is needed and collecting it can be time-consuming and expensive. Governments can select the data collection methods and analytical tools that will best help them reach their SDG targets.
Fortunately, there are several approaches to this. Longitudinal data on household expenditure can be a better way of measuring poverty and income inequality in Asia and the Pacific compared to the cross-sectional data analysis currently used across the region. Longitudinal data tracks the same kinds of data over long periods of time. Cross-sectional data is collected from many subjects at a single point in time.

#Bank #of #England plans liquidity tool for #Islamic #banks

The Bank of England said it would develop a sharia-compliant liquidity tool for use by Islamic banks, to attract business from the industry's core centres. London has for some time sought to position itself as a global hub for Islamic finance.
The central bank has issued a consultation paper on a fund-based deposit model, that would help Islamic lenders to meet regulatory requirements for liquid asset buffers. It was stated, that the facility is unlikely to be ready before the spring of 2018, and it has yet to decide on whether it will develop a liquidity insurance facility. However, the tool would be a welcomed development for Britain's Islamic banks. These include Gatehouse Bank, the Bank of London and the Middle East, Al Rayan Bank and a unit of Qatar Islamic Bank.
The pricing would be comparable with conventional tools, and attractive for Islamic banks.

#Al #Hilal #Bank appoints new #CEO

Al Hilal Bank announced appointment of Alex Coelho as new chief executive officer.
With more than two decades of experience in the global financial industry, he will be responsible for reinforcing the Al Hilal Bank’s position as a leading Islamic bank in the UAE and Kazakhstan.
In the past, Coelho had leadership roles between the Middle East and New York, and co-led global financial institutions coverage in the US, Canada, Latin America, Asia and Europe, according to a statement.

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