Islamic Banking

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Islamic Bank of Britain launches savings bond paying 4%

The Islamic Bank of Britain will bring about a savings account with a rarely high rate - 4%. The new account has a fixed rate for two years. The deposited money will be used to support Sharia-compliant and ethical trading companies.

Benefits of non-interest banking, by Bintube

In a recent interactive session with journalists in Lagos, Mohammed Bintude, Manging Director and Chief Executive Officer of Jaiz International Bank, discussed the intoduction of Islamic banking in Nigeria. He stated that in spite of the initial controversial reception, Jaiz Bank Plc is now fully operational. Moreover, there are plans of nation wide expansion of the bank.

RAM Ratings reaffirms AAA(s) rating of Muhibbah's Islamic Bonds

The AAA(s) rating of Muhibbah Engineering Bhd's RM130 million Islamic Bonds has been reaffirmed by RAM Ratings. Thus, Muhibbah's irrevocable and unconditional undertaking to purchase and cancel all the Islamic Bonds at the exercise price upon the declaration of an event of default is honoured. The support of Malayan Banking Berhad's guarantee will have a positive impact on the credit profile of the Islamic Bonds beyond Muhibbah's inherent or stand-alone credit standing.

NBO geared to offer ‘Muzn’ sharia-compliant products

As soon as the Central Bank of Oman grants the National Bank of Oman the final guidelines and the necessary approvals, the latter can offer Islamic Banking products. Also, it has launched its own Sharia compliant brand named ‘Muzn’.

Qatar’s Masraf al Rayan unveils Shariah-compliant brokerage

Qatar's Islamic bank Masraf al Rayan has set up an independent brokerage subsidiary. Its purpose will be to offer a number of Shariah-compliant financial instruments for all types of investors. Although Al Rayan Financial Brokerage Company will be wholly owned by Masraf Al Rayan bank, it will operate as an independent subsidiary.

Does Islamic banking need tax-break pick-ups to lubricate the sector?

In Malaysia, there was a discussion whether to continue tax incentives for Islamic finance or to use tax-break pick-ups to lubricate the sector. Since some of the incentives were aimed to make Islamic finance competitive with conventional finance, they should at some point be phased out. However, incentives which ascertain the equity between Islamic and conventional finance, should be maintained.

Islamic banking opens job options

A huge number of experts in Islamic finance are needed due to continually emerging markets in India and abroad. Since already 75 banks all over the world have Islamic banking and finance branches, job opportunities for as much as 50,000 experts are open. Among these corporate banks are e.g. HSBC, Citigroup, Deutsche Bank and Standard Chartered.

Albaraka Türk secures $250m funding

Albaraka Türk has authorized a number of leading banks to arrange a a $250 million dual-currency syndicated finance facility. This facility shall be used for the expansion of Albaraka Türk's financing activities in Turkey. The tenor of the facility is one year and its profit rate is of 200 bppa over the Libor/Euribor. Among the participating banks are ABC Islamic Bank, Al Hilal Bank, Bank Islam Brunei Darussalam Berhad, Emirates NBD Capital, Noor Islamic Bank and Standard Chartered Bank.

Call For More Innovative Islamic Financial Products

Until now, Malaysia has been focusing mainly on the takaful business, wich is not concidered enough any more. Malaysian bank should offer more innovative Islamic financial products as well. According to Chief Executive Officer of the Islamic Banking and Finance Institute Malaysia (IBFIM) - Datuk Dr Adnan Alias - it is essential for the development of Islamic economics, finance and entrepreneurship to be enhanced.

Need to build up confidence to promote Islamic finance globally

Even though Islamic finance has been thriving in Malaysia, a country with one of the most established and regulated Islamic finance frameworks, it is hardly present on the global Islamic finance market. Moreover, the majority of local banks tako part in neither the global syndication market nor the sukuk market. Therefore, confidence has to be built up in order for Malaysian banks to stop peceiving themselves as inferior to other syariah-compliant frameworks.

S&P Indices Launches Shariah Index with the Organisation of Islamic Cooperation

S&P Indices made an anouncement that a new Index will be launched due to increase in the demand for a shariah-compliant benchmark in Islamic countries. The new S&P/OIC COMCEC 50 Shariah Index will measure the performance of 50 leading Shariah-compliant companies from members of the Organisation of Islamic Cooperation (OIC). Eligible countries and territories for the Index are: Bahrain, Bangladesh, Côte d'Ivoire, Egypt, Indonesia, Jordan, Kazakhstan, Kuwait, Lebanon, Malaysia, Morocco, Nigeria, Oman, Pakistan, Qatar, Saudi Arabia, Tunisia, Turkey and the United Arab Emirates.

Abu Dhabi Islamic Bank is first UAE bank to launch Iraq operations

Abu Dhabi Islamic Bank (ADIB) announced their expansion to Iraq yesterday. By opening a branch in Iraq, the bank becomes the first financial institution in the UAE which launches operations there with license from the Iraqi Central Bank. The branch of ADIB will be situated in Baghdad and will be managed by Jawdat Mahmoud Jawdat. ADIB aims to develop the Islamic finance industry in Iraq using best in class Islamic banking products.

Egypt Islamic finance plans include boosting waqf

The Freedom and Justice Party has announced it financial development plans which will include waqf. Thus, multiple small subscriptions to a sukuk will make their contribution in form of cash or other assets instead of a single wealthy donor. However, the efficiency of waqf management in Egypt is largely criticized.

SME Bank issues RM3b govt-guaranteed sukuk

A government- guaranteed Islamic medium-term notes programme (IMTN) with a tenure of up to 20 years in weight of RM3 billion will be issued by the Small and Medium Enterprises Bank Bhd (SME Bank). According to the bank's managing director, the first issuing will be in accordance with the investment structure knon as the wakalah structure. AmInvestment Bank Bhd, Kuwait Finance House (M) Bhd and Maybank Investment Bank Bhd are appointed as the joint lead arrangers and joint lead managers for the sukuk.

Standard Chartered Saadiq to offer PruBSN Takaful products in Malaysia

Standard Chartered Saadiq is offering Takaful products to Prudential BSN: three new Takaful investment-linked plans at eight of its branches. In addition, these Takaful products will soon be available at the 32 conventional Standard Chartered branches in the country. Customers can count flexibility to secure protection and investment plans which correspond to their lifestyle and financial needs.

To offer Islamic financial services CDB partners with ADL Capital

With the scheduled launch of the company’s Shariah compliant Independent Finance Unit branded “CDB Meezan”, Citizens Development Business Finance PLC (CDB) endeavours an expansion in the domestic market of Islamic Finance. As part of CDB, “CDB Meezan” will act under its supervision and will offer a range of deposit and financing products and services to its entire clientele. “CDB Meezan” was made possible thanks to the expert guidance and supervision of SEC registered Investment Manager, Adl Capital Limited.

Crescent Wealth to launch Australia’s 1st Islamic pension fund

Australian fund manager Crescent Wealth intends the launch of the country’s first Islamic pension fund by December. According to its managing director, between 15 to 30 percent of it shall be allocated in property. The goal is to build the fund to between A$4 billion ($4.03 billion) and A$6 billion in five years. This accomplishment should be possible due to lack of available Shariah-compliant financial products in Australia.

BNP Paribas’ Alwi Says More Non-Islamic Investors Buying Sukuk

Syed Alwi bin Mohamed Sultan, the Kuala Lumpur-based head of Islamic banking for Asia Pacific at BNP Paribas Malaysia Bhd., talked about the trends in Islamic finance at the World Islamic Banking Conference in Singapore.
He noted that there is more diversification of the investor base. Potential issuance this year are from countries like South Africa, Kenya, and Senegal.

Islamic banks 'can fill funding gap': S’pore Monetary Authority

Islamic banks are preparing themselves to catch a larger share of the global trade and project financing market, while European banks pull back funds to improve balance sheets back home.
The Monetary Authority of Singapore's (MAS) managing director Ravi Menon underlined the fact that trade and infrastructure development is naturally compatible with Islamic finance, which has the centre of attraction in supporting real productive activities.

Bangladesh launches Islamic interbank money market

Bangladesh has launched an Islamic interbank money market, having the purpose to help sharia-compliant banks administer their short-term funding.
Apparently the market would supply Islamic banks with a channel to use surplus money. Islamic banks are responsible for over 15 percent of the country's banking sector.
This will help banks who apply Islamic sharia will have the possibility to overcome any funding crisis like the conventional banking system.

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