Islamic Banking

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Such a scandal

Many Islamic banks thought the financial crisis as the ultimate marketing opportunity. In contrast to the scandals in Western banks, Islamic banks could present themselves as the opposite. Thus they could tempt consumers with promises of fairness, transparency and morality.

Demand grows for Islamic op risk managers

The expansion of Islamic finance throughout the Middle East has caused an increasing interest in knowledge and experience levels required by banking professionals to operate in this financial area. Numerous conflicts and political changes in the Middle East require new systems of government as well as corresponding risk management.

Can Political Islam Reform "Islamic Finance"?

The IMF and Egypt continue to negotiate a potential $4.8 billion loan at an interest of 1.1%. The Salafi Nur Party made a statement claiming that this interest is not a forbidden riba. Their statement was followed by one by a another Salafi preacher with similar content.

India offers vast scope for Islamic banking

It was reported that Indian authorities intend to introduce some form of interest-free banking. Thus, the country’s unbanked Muslim populations shall be brought into mainstream banking. This initiative is likely to result in a huge rise in Islamic Banking and in a significant gain for Indian banking as well. While a channel for substantial fund flow from areas such as the Gulf region will be opening up, a huge number of new customers will join the Indian banking sector.

Malaysia retains lead in Islamic finance

Malaysia maintains its leading position in Islamic finance having a large volume of Islamic investors looking for syariah-compliant investments like sukuk compared to Singapore. The huge number of Muslim-owned companies in Malaysia is one of the most significant reasons for the high demand for syariah-compliant financing and sukuk issuance. 60 percent of global sukuk deals are concluded in Malaysia.

Islamic Banking In Nigeria: Boost Or Spoof?

After the approval for “Sharia compliant” equities by Central Bank of Nigeria (CBN) last year, in 2012 an Islamic window opened on the trading floor at the Nigerian Stock Exchange (NSE). This is the first faith-based financial window in Nigeria, which fact causes fears that a deliberate Islamic financial services industry may have unintended consequences on equity transactions. The goal is to enthrone Islamic financial principles in equity trading, by tracking the performance of Sharia compliant stocks on the exchange floor.

Islamic banking versus conventional banking

The common belief goes that Islamic finance or banking is for Muslims only. However, this is not true. Islamic finance and banking attempts to build a financial system based on ethics and fairness, havin thus an effect on the socio-economic conditions of the market it is implemented in. Therefore, people of any belief can make use of it. The problem is the lacking awareness about Islamic finance in Pakistan as well as worldwide. Optimized solutions for proper display of Islamic products and for bridging the communication gap between the Shariah councils issuing the fatwas pursuant to Islamic Finance, and the managers drafting the advertisements are sought.

Skill shortage obstructs growth of Islamic finance

According to Bank Negara Malaysia’s Shariah Advisory Council, there is a skill shortage in the Islamic finance Industry. In order to prevent it from hindering the growth of the Islamic Finance, Southeast Asian universities are adding Islamic finance courses. The new programmes will start at universitas Muhammadiyah in Malang, Indonesia and Kuala Lumpur-based International Centre for Education in Islamic Finance (INCEIF). The new courses shall bridge the gap between what was formerly taught and what is requred by employers.

ADIB Community Banking To Serve Non Profit Organisations

Abu Dhabi Islamic Bank said it will start to provide a new business line focused on UAE community that is in accordance with banking requirements for non-profit organizations. A new service, called ADIB Community Banking, shall provide help to Charities, Philanthropy Associations, Special Needs Foundations and Islamic affairs authorities in order to fulfill their special needs.

UK Muslims Get Access to Shari`ah Finances

UK Muslims will get access to financial products that are in line with Islamic Shari'ah rules, as day want to know what drives the returns they are receiving. A new service, called Ummah Financial Planning, has been recently launched by Garbutt & Elliott and should help around two to three million Muslims in the UK to manage their finances.

Emirates Islamic Bank underlines significance of Ramadan with support for various initiatives

Emirates Islamic Bank said it will sponsor the sixth Takatof Ramadan Project that was recently set up by the Emirates Foundation for Youth Development. The scope of the project is to create an interactive social network among all community and to help disadvantaged families.

Shariah Included in Indonesian Bank Rule

Indonesian central bank plans to strengthen payments on housing and automotive loans at Shariah banks. New requirements will be similar to those of conventional lenders for housing and vehicle loans issued on March 15. Due to new regulation, which took effect on June 15, it will be necessary to pay 25 percent for two-wheeled vehicles and 30 percent for four-wheeled vehicles as down payment.

NCB pioneers Shari'ah-compliant airport financing

NBC shall provide the first Islamically structured Airport financing which is primarly based on Shari'ah-compliant financing model. According to that critical infrastrucutre will be essentially owned by gevernments.

Bank Islam Contributes RM120,900 In Business Tithe

Today Bank Islam Malaysia Bhd presented to the Sabah Tithe Centre business tithe of RM120,979 for distribution to deserving recipients. Last year the bank also registered a pre-tax and pre-tithe profit amounting to RM470.1 million.

BLME Celebrates 5 Years of Trust, Integrity and Ethical Banking

In July 2007 Bank of London and The Middle East ("BLME") celebrated its fifth anniversary of receiving FSA authorisation. Throughout these years BLME has successfully constituted and developed its business platform, providing various wholesale banking and wealth management services. Humphrey Percy, CEO of BLME, said that despite the challenges in the global economical turmoil, BLME had achieved key successes in the growth of their Wealth Management business and Corporate Banking divisions. BLME’s success is due to reliance upon traditional banking values of trust, fairness and integrity. Thus it provides clients with ethical corporate banking, treasury and wealth management services across Europe and the GCC.

More musical chairs in Bahrain

The chief operating officer of Bahrain-based Islamic investment bank Gulf Finance House - Haider Al Majali - has resigned. At the time of going to press, no name of a new COO has been mentioned. Meanwhile, the country's position as an Islamic finance capital of the GCC is strongly questioned. Ethnic conflicts and misuse of tear gas by the police against vocal opponents to the ruling regime are the main threat. The financial position of Bahrain depends on the development of its domestic situation.

Islamic lenders take advantage of falling costs

Islamic lending companies from Dubai’s DIFC Investments LLC to Saudi Arabia’s Etihad Etisalat take advantage of falling borrowing costs. As a result, Islamic syndicated lending in Europe, the Middle East and Africa rose to a four-year high this year. Shariah-compliant transactions this year are as high as $8.37 billion (Dh30.74 billion). The largest share belongs to Etihad Etisalat and is worth 10 billion-riyal ($2.67 billion). This year’s lending is over $3 billion higher than last year's.

Islamic trade finance: lost in transaction

The Islamic trade industry neglects trade finance and leaves it to the domination of conventional banks. Direct lending is preferred over trade business. The youth of Islamic banks is pointed out as the mail reason for this kind of banking policy. However, due to a shift in the global trends pattern, an increase of the scope for Islamic banks to expand in trade finance is expected.

Islamic banking may enter Morocco

The vote of Morocco's parliament on the new draft banking law will take place in September. A chapter of the new law concerns Islamic banking. It is expexted, that in the very near future, Islamic banking will start in the country, already there are investors for the sector. A boost to Sharia-compliant finance is discussed.

Syria banks face deposit challenge as civil war expands

The civil war in Syria epands to the capital, which is why banks experience some difficulties. Even though corporate lending and trade financing have almost stopped, banks still continues deposits and withdrawals. The higher inflation and weaker pound are possible to start a crisis, however, there is no immediate threat of collapse of the banking system.

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