IslamicFinance.de

In #Indonesia deposit insurance is an integral part of the financial fractional-reserve banking system. This structure was put into place twelve years ago through the enactment of the Indonesia Deposit Insurance Act 2004. Islamic deposit insurance has become more relevant of late due to the worldwide development of Islamic finance. Related to the implementation of the fractional banking reserve system in Islamic banking institutions (IBIs), there are issues to do with the reserve structure that is incompatible with sharia principles. Deposit insurance does involve the exchange of money for money and the exchange occurs with different values and at different times. Hence, some sharia scholars would argue that it is an interest-based transaction and therefore non-permissible.

QIIB announced the issuance of QR1bn Sukuk. The Sukuk aims at boosting the Bank's Tier 1 Capital to maintain a higher Capital Adequacy Ratio (CAR) complying with the Basel III norms. Last year QIIB shareholders had approved the Bank's proposal to raise up to QR3bn through Sukuk issuance.
A higher capital adequacy will not only help the Bank's risks absorption capacity but also expected to promote financial stability and efficiency of the Shairah compliant banking services provider.

Bahrain-based Islamic investment bank GFH Financial Group has repaid $45 million worth of debt, bringing its total syndicated liabilities down to $105 million. This is the latest effort by GFH to deleverage, having held liabilities of over $1 billion back in 2008. In June GFH planned to raise $150 million via sukuk to repay outstanding debts and use surplus cash for future investments. Together with Abu Dhabi Financial Group, GFH is working to establish an Islamic financial institution in Abu Dhabi's financial free zone with authorised capital of $100 million.

Investors from the Islamic financial world could be the answer to Italy’s problems in the wake of the Brexit. On a recent conference in Italy, participants said this would require legislative changes to follow Islamic principles. A working group at the Lower House’s financial commission is looking into the matter. Participants also suggested issuing State bonds following the rules of Islamic finance. Under the proposal, the assets would consist of State-owned real estate, bought and re-sold by a company set up for the purpose, whose participating shares would be bought by investors.

Silkbank introduced Emaan Islamic Banking (EIB) through conversion of its seven conventional banking branches into dedicated Islamic Banking branches. Emaan Islamic Banking offers a complete suite of deposit products including Current Account, Saving Accounts and Term Deposits. Diminishing Musharaka, Musawamah, Murabaha, Musharaka and Trade Finance facilities are also available. The Emaan Islamic Banking’s branch network stands at a total of 10 branches in 8 cities across Pakistan.

IFC & ISRA Thematic Workshop 2016, in association with K&L Gates
Wednesday, 26 October 2016, 9:30 a.m. - 3:00 p.m.

The Islamic Finance Council UK (IFC) and the International Shari’ah Research Academy for Islamic Finance (ISRA), in association wih K&L Gates invite you to an event addressing the Shari’ah governance model. The event will include the UK launch of the IFC and ISRA External Shari’ah Audit Report 2016.

Location: K&L Gates, One New Change (Watling Street entrance), London

Presenters: Jonathan Lawrence

Sponsors: K&L Gates, IFC, ISRA

REGISTER
http://www.klgates.com/resources/xpqEventRegistrationKNLG.aspx?xpST=Even...

9.30am - Registration and breakfast
10.00am - Morning sessions
12.00pm - Networking lunch
1.00pm - Afternoon sessions
3.00pm - Event concludes

The event will cover several key themes including:
How the current Shari’ah governance model works; its gaps and limitations
Examining the role of scholars alongside areas of potential conflict and impairment
The role of external Shari’ah audit
Regulatory differences in approach – is there a ‘best practice’?

in September 2016:

In the growing area of Islamic microfinance, a diverse skillset is required. Professionals have to be knowledgeable in traditional retail banking, in the ethics of Islamic finance and in the relevant compliance and regulation issues. In order to provide you with the necessary skills and know-how to become a well-rounded Islamic microfinance professional, we have designed the certification course ‘Certified Expert in Islamic Microfinance’. This e-learning course was jointly developed by a team of experts from the Frankfurt School of Finance and Management, Islamic Relief Worldwide, and the Islamic Relief Academy. This combination of expertise provides you with the opportunity to have a rich learning experience based on the broad knowledge of diverse, highly qualified professionals.

This 6-month certification course is designed to be a part-time training, offering you the flexibility to follow your own schedule and the ability to combine daily work with your professional development.

The "Certified Expert in Islamic Microfinance" was funded with UK aid from the UK government.

Khazanah Nasional, the $27 billion Malaysian sovereign fund, is weighing a bid for control of the insurance operations of billionaire Quek Leng Chan’s Hong Leong Financial Group. Khazanah is considering an offer for Hong Leong Financial’s 70% stake in Hong Leong Assurance and its 65% holding in Hong Leong MSIG Takaful. The bid could be valued at about 3.2 billion ringgit ($799 million). Hong Leong Financial said last month that Malaysia’s central bank had no objection to the sale of its stakes in the two insurance units.

According to Group CEO Mazin Saad Al-Nahedh, the market share of Kuwait Finance House-Turkey (KFH-Turkey) accounts for 37% of the participation banking in Turkey. The total assets of participation banks as percentage of the total assets of banks in Turkey account for 5-6% and is expected to surge. Growth rates in KFH-Turkey have outpaced the rates in Kuwait, Bahrain and Malaysia. Noting that all Kuwaiti banks were strongly capitalised, Al-Nahedh mentioned that KFH Group’s own capital adequacy ratio surpassed 17% as of end Q1. Commenting on Kuwaiti sovereign debt issuances to Islamic banks, he said that KFH’s share of the debt was 50 per cent, mirroring its market share among Islamic banks in Kuwait.

Badlisyah Abdul Ghani, the former CEO of CIMB Islamic Bank, has been appointed deputy CEO of pilgrim fund Lembaga Tabung Haji. Badlisyah gained fame when he disputed the authenticity of banking documents released by The Wall Street Journal relating to 1Malaysia Development, which touched on US$700 million being transferred to Prime Minister Datuk Seri Najib Razak’s personal accounts. While an internal inquiry was ongoing at CIMB, Badlisyah resigned in mid-August last year. It is not clear how Badlisyah is already stated on the company website as deputy CEO, when no formal announcement has been made in this respect.

In #Kuwait the Court of Appeal has set a new date for the case against Islamic finance group The Investment Dar (TID). The case was brought by Noor Investments of Kuwait and aims to have TID declared bankrupt. A date of 26 October has been set for the court’s committee of experts to report back. The Investment Dar said it would continue to defend the company’s assets from attacks. In their opinion, these court cases are brought by a small number of creditors who wish to put themselves in a preferential position.

In #Indonesia the Islamic banks’ market share has remained below 5% for the last several years, despite having existed since the 1990s. Now the State-Owned Enterprises Ministry is mulling a proposal to allow Islamic lender subsidiaries owned by the four state-run banks to be merged into two new entities. The ministry’s assistant Gatot Trihargo said the state would still control the two new sharia lenders as majority shareholders. He added that at least two of the four sharia banks should be merged in order to become a BUKU III lender, which has capital between Rp 5 trillion and Rp 30 trillion. Bank Aceh, a regional development bank, is currently in the process of being converted into an Islamic lender, while Bank Syariah Mandiri is seeking strategic investors from the Middle East.

Turkish regulators have cancelled the banking license of Islamic lender Bank Asya. The Turkish Banking Regulation and Supervision Agency’s decision (BDDK) came after the Turkish Deposit Insurance Fund (TMSF) temporarily suspended Bank Asya’s banking operations on July 18. According to the TMSF the sale of the bank did not attract any bids on July 15. The tender was for the sale of a minimum 183.6 million A group shares, amounting to 51% of the bank. Bank Asya is affiliated with Fethullah Gulen, who the Turkish authorities accuse of heading a clandestine 'parallel state' to undermine the Turkish government.

The State of Osun in southwestern Nigeria raised a sukuk bond worth 10 billion naira ($62 mn) from the capital market to fund educational development. After the recent trend of Eurobond issuance by African countries, Osun’s offering was sowing the seeds for more African sukuk. Prior to Osun, only Gambia and Sudan had issued local-currency short-term domestic notes. Osun's Governor Rauf Aregbesola believes that the potential of Islamic finance can also attract investors from the Middle East. Osun State’s planned multi-billion naira sukuk fund for education represents Nigeria’s most ambitious attempt to promote Islamic finance.

The Steering Committee of Sitara Chemicals received laudation for the promotion of Islamic Banking in #Pakistan. The Committee was headed by Mr Saeed Ahmed, Deputy Governor State Bank of Pakistan. Sitara Chemicals has shared with Islamic debt investors its profits without comprising on true Musharakah principles. This fact is evident from the level of rate of return offered by the Company on its earlier Islamic debt issues. In 2012 Sitara Chemicals signed an agreement for design and procurement of Coal Based Power Plant having Capacity of 38.5 MW. Total Project cost was estimated at Rs 3.1 billion and Diminishing Musharika Facility Rs 2 billion from syndication of renowned Islamic Banks of Pakistan. In July 2016, this project has been commissioned and trial production has started. First instalment of this facility has been repaid as per its planned schedule.

Over the last two decades, Islamic finance and socially-responsible investments (SRI) have become essential part of the development discourse. These two have seen the most rapidly growing areas of finance, of which Islamic financial assets have grown by 15-20% a year and its volume in 2014 exceeded US$2 trillion (RM8 trillion), while the SRI assets globally in the same year soared from US$13 trillion to US$20 trillion in two years. The principles of Islamic finance share common threads with SRI. These commonalities provide opportunities for Islamic finance to broaden its portfolio by tapping into the large amount of SRI funds available in global market.
Malaysia already started in August 2014, when it launched its Sustainable Responsible Investment Sukuk Framework to facilitate the financing of SRI initiatives. SRI sukuk can act as a compass for investors in the creation of shared value within society.

The Savings Deposit Insurance Fund (TMSF) announced that the operations of Bank Asya will be temporarily frozen. According to the official announcement, the decision was made by the Fund Council in accordance with Article 107 of the Banking Law. The tender for the sale of Bank Asya's shares was scheduled for Friday and TMSF announced that no bid had been offered for the tender. Although shares were planned to be opened to transactions following the bank's sale, Bank Asya's shares are now closed for transactions. Bank Asya is believed to be the main financial institution for the controversial Gülen Movement, which is accused of large-scale cheating and nepotism.

The State of Osun in southwestern Nigeria raised a sukuk bond worth ten billion naira ($62 mn) from the capital market to fund educational development. After the recent trend of Eurobond issuance by African countries, Osun’s offering was sowing the seeds for more African sukuk. Prior to Osun, only Gambia and Sudan had issued local-currency short-term domestic notes. Osun's Governor Rauf Aregbesola believes that the potential of Islamic finance can also attract investors from the Middle East. Osun State’s planned multi-billion naira sukuk fund for education represents Nigeria’s most ambitious attempt to promote Islamic finance.

#Saadiq, synonymous with "truthful" in Arabic, is the brand name for Standard Chartered’s global Islamic banking services. Currently Saadiq provides a comprehensive range of Shariah compliant international banking services across the wholesale and consumer banking. To ensure that Standard Chartered Saadiq products comply with the principles of Shariah, it consults an independent committee comprising three of the world’s most renowned Shariah scholars – Dr Abdul Sattar Abu Ghuddah, Sheikh Nizam Yaquby and Dr Mohammed Ali Elgari.

The Turkish Deposit Insurance Fund (TMSF) announced it would temporarily suspend operations in Bank Asya, which is closely associated with the cleric Fethullah Gulen. Turkish President Recep Tayyip Erdogan blamed Gulen and his supporters for the coup attempt on Friday in which more than 200 people have been killed. The coup attempt was suppressed by early Saturday as 103 army generals and admirals were detained. The arrests now amount to a third of the country’s top military officials.