IslamicFinance.de

Patrick Imam and Kangni Kpodar note that the 9/11 attack on the US ‘had a positive impact on assets of Islamic banks, perhaps because Muslim investors, who traditionally invested in the West, were compelled to keep more money at home for fear of expropriation.

The study said that while oil prices have a positive and statistically significant impact on the diffusion of Islamic banking, the effect is likely to be asymmetric. They found that the probability for Islamic banking to develop in a given country rises with the share of the Muslim population, income per capita, and whether the country is a net exporter of oil. Trading with the Middle East and economic stability also are conducive to diffusion of Islamic banking and proximity to Malaysia and Bahrain, the two Islamic financial centers, also matters.

The Solidarity Group Holding board has appointed of Ashraf Bseisu as group chief executive officer. Mr Bseisu is a long-standing Solidarity executive and a prominent member of the region's insurance industry. Solidarity Group Holding, one of the largest takaful companies in the world, includes the Solidarity Family Takaful Company and Solidarity General Takaful Company in Bahrain as well as subsidiaries and associates in Saudi Arabia, Jordan, Egypt, Malaysia and Luxembourg. Mr Bseisu is currently Bahrain Insurance Association chairman and the General Arab Insurance Federation vice-president. He has been with Solidarity since his appointment as general manager - finance and corporate management in July 2006 and has held several senior posts within the organisation. He has more than 20 years of experience in the insurance and financial services sector, where he held several executive positions.

"THE CONCEPT AND OPERATIONS OF SWAP AS A HEDGING MECHANISM FOR ISLAMIC FINANCIAL INSTITUTIONS"

The main objective of this paper is to give a clearer picture of the swap mechanism as offered by the international Islamic financial institutions and how its operations are structured in accordance with Shariah principles and contracts. In preparing this paper, ISRA has held a series of internal discussions as well as with outside parties, including Shariah experts and operating officers from international banks directly involved in the structuring of Shariah-compliant swap products. Documents related to the products and related academic materials were also referred to, giving a wider and thorough perspective on the issue.

by

Assoc. Prof. Dr. Asyraf Wajdi Dusuki
Head of Research Affairs Department
International Shari’ah Research Academy for Islamic Finance (ISRA)

Shabnam Mokhtar
Researcher
International Shari’ah Research Academy for Islamic Finance (ISRA)

Download: http://www.isra.my/media-centre/downloads/summary/29/216.html

The IFSB said the National Bank of Tajikistan, Prudential Hong Kong, along with Malaysia-based OCBC Al Amin Bank and the Islamic reinsurance unit of Germany's Munich Re will join as "observer" members,

OSK Investment Bank plans to set up an Islamic stockbroking business and offer syariah equity-linked investments.

Malaysia’s competitive advantage in Islamic finance will strengthen as the country evolves into an international hub for Islamic finance.

Gross domestic product can expand by 1 percent to 2 percent more than the central bank’s March forecast of 4.5 percent to 5.5 percent, Najib told the Foreign Correspondents Association in Singapore yesterday. Measures including developing the Islamic finance industry will aid growth, he said, adding that the government will probably sell Shariah-compliant global bonds denominated in dollars.

The Malaysian unit of Kuwait Finance House, the Gulf state's top Islamic lender, will cut its bad loans to the industry average within 5 years as it finances stronger names, its chief said on Thursday.

Islamic finance players should explore opportunities in equity-based financing in making the industry more attractive. Making this call, Bank Negara Malaysia's Deputy Governor Datuk Muhammad Ibrahim said through equity-based financing, industry players could move away from mimicking conventional products and operate truly on syariah compliance.

Following is a list of events in Malaysia as well as news stories and press reports which may influence financial markets.

Islamic finance has revitalised the economic ties and strengthened the financial linkages between Asia and the Middle East, says Bank Negara Governor, Tan Sri Dr Zeti Akhtar Aziz.

Central Bank of Nigeria (CBN) confirmed that the two institutions signed a Memorandum of Understanding (MoU) to share expertise and exchange relevant information in the areas of banking supervision, Small and Medium Enterprises (SMEs), Microfinance and Islamic Finance, Monetary Policy and Development Finance Institutions. The MoU was signed at the headquarters of the Malaysian Central Bank, the Bank Negara in Kuala Lumpur.