IslamicFinance.de

Iran's Bank Mellat is suing the British government for almost $4 billion in damages after the Supreme Court quashed sanctions imposed against it over alleged links to Tehran's nuclear programme. The lender wants compensation for the "significant pecuniary loss" and substantial reputational damage it sustained as a result of sanctions imposed in 2009, according to a claim filed in London's High Court. It claims the UK government also successfully lobbied other authorities to impose their own sanctions that ultimately caused and continue to cause the loss of profitable business, customers, banking relationships and dealing services.

The Turkish Treasury said on Wednesday it issued a lira-denominated sukuk with a volume of 1.8 billion lira ($736 million). The instrument will mature on Feb. 15, 2017, the Treasury said on its website. With the latest sukuk, the Treasury's outstanding lira-denominated sukuk amount has increased to 6.8 billion lira. Treasury also has $3.75 billion worth of outstanding dollar-denominated sukuk.

Emirates, the Dubai-based airline, has hired banks to help it arrange a sukuk of up to $1 billion, as the airline seeks to raise cash to finance its pipeline of aircraft orders. The issue will be backed by UK Export Finance (UKEF). UKEF expected to guarantee an Islamic bond in 2015 issued by a customer of Airbus, Britain finance ministry said in October. The upcoming U.K.-backed Emirates deal could close by the end of the first quarter. The transaction is likely to be worth up to $1 billion, with the lifespan being between five and 10 years. Eight banks are arranging the transaction: HSBC, Citigroup, JP Morgan , National Bank of Abu Dhabi, Dubai Islamic Bank, Abu Dhabi Islamic Bank, Emirates NBD and Standard Chartered.

In spite of the fact that more than 60 percent of Bank Asya's A-type shareholders have submitted the documents requested by the Banking Regulation and Supervision Agency (BDDK) that were the basis for recently taking control of the management of the bank, the watchdog agency has not given up that control, stoking claims that the management takeover was part of campaign of intimidation against the lender. Many believe that the government is not allowing the supposedly independent BDDK to give management control back to the partners. Even though the bank recorded a TL 875 million loss in 2014, its non-performing ratio is still one of the highest in the sector at about 18 percent.

Bank Asya has declared a commercial loss for corporate tax of TL 942 million ($383.44 million) and its "net term loss" for the fiscal period of Jan. 1 and Dec. 31, 2014 was TL 875 million. The bad debts of the bank had increased to TL 2.1 billion in the first nine months of 2014 and now the fourth quarter is being examined. Further, whether loans exceeding TL 3 billion, which were granted in violation of Articles 50 and 51 of the Turkish Banking Code, have been repaid or not will also be revealed after the examination of the 2014 balance sheet as publicly traded companies and banks have to hand in their balance sheets to the KAP. Besides, there are various allegations about the asset management companies to which the bank has transferred its bad debt files.

Turkey’s takeover of Bank Asya is making the government an even bigger player in the Islamic finance industry, just as state-owned lenders Ziraat Bank, Halkbank and Vakifbank prepare to start Shari’ah-compliant units to challenge the privately-owned banks. Vakifbank will get a $300 million loan from the Islamic Development Bank to help fund its Islamic finance arm, while Halkbank plans a capital raising to finance its unit. The initial idea as announced by officials was that the newly-established banks would not chase existing participation banks’ clients but instead focus on rural areas and increase the total pie. Finance Minister Mehmet Simsek said in an October interview he considered the Islamic finance industry in Turkey to be “under-banked” and that the government looked favourably on the idea of issuing new licenses to lenders.

The Turkish banking regulator's decision to take over the management of Bank Asya did not affect the country's unsolicited sovereign credit ratings, Standard & Poor's announced Feb. 6. Turkey's current credit rating stands at BB+ with a "negative" outlook. The rating agency sees this decision as an isolated incident and not a harbinger of systemic distress in the banking sector or a determined politicization of Turkey's regulatory institutions, S&P said in the statement. Bank Asya's relatively small size makes it rather unlikely that there could be any contagion effects, it added. Following the Bank Asya takeover, the United States had called on all governments to ensure the monitoring of corporate and financial activity is done in line with international legal standards.

Turkey’s government seized control of Islamic lender Bank Asya and dismissed its executives, marking the latest extraordinary step in a highly politicized monthslong battle over the company. Late on Tuesday, the country’s banking watchdog transferred 63% of Bank Asya’s preferred shares into the state-run Savings Deposit Insurance Fund, which answers directly to the prime minister. The fund then replaced the bank’s leadership with a new chief executive and board of directors. The bank’s shares, which have been allowed to trade only one houreach afternoon since September, dropped 1 kurus to 60 kurus (25 cents), a record low, and then rose to 63 kurus as Istanbul’s market closed.

The takeover of Bank Asya by the Turkish Savings Deposit Insurance Fund (TMSF) is entirely legal and judicial, but not political, Turkish Prime Minister Ahmet Davuto?lu said on late Feb. 4. Many people continued to show their support to the bank by putting money into their bank accounts Feb. 5, although some others were reported closing their bank accounts. TMSF seized some 63 percent of Bank Asya shortly after the banking watchdog (BDDK) ruled in favor of its seizure on late Feb. 3. The BDDK said in a statement on its website that it seized the bank “because the institution has not presented a partnership structure that is transparent and open enough to allow for effective regulation.” The watchdog appointed a new board of directors immediately after the seizure.

Turkey's largest Islamic lender, Bank Asya, is demanding that the state-run Savings Deposit Insurance Fund (TMSF) return the bank's rights to control its management following strong indications that the fund's decision to take over control of the lender's board has no legal basis and is politically motivated. Turkey's banking watchdog, the Banking Regulation and Supervision Agency (BDDK), handed management control of 63 percent of the privileged shares of Bank Asya over to state savings funds on Tuesday, citing a lack of certain key documents as the reason why the bank cannot maintain its operations. The bank's shareholders are currently preparing to provide the watchdog with the required documents and the bank has separately taken legal action to revoke Tuesday's intervention.

Turkish Economy Minister Nihat Zeybekci said on Wednesday a banking regulators' decision to take over management at Islamic lender Bank Asya ends a period of speculation and restores a safer environment. Zeybekci also told a news conference broadcast live on TRT television that it was "unfair" Turkey had to pay a high cost due to its interest rates and accused the central bank of lagging the market after the bank decided against holding an extraordinary policy meeting to cut rates.

UK regulators have accepted European Islamic Investment Bank's application to vary its regulatory permissions, meaning it is now an exempt capital adequacy directive (CAD) investment firm. Last September, European Islamic Investment Bank had concluded that the scope of its UK regulatory permissions was in excess of requirements, and began talks with regulators to "vary its regulatory permissions" to enable it to focus on its core strategy. At the time it anticipated that the move would involve giving up its deposit-taking licence. The European Islamic Investment Bank is regulated by the UK's Financial Conduct Authority.

The Saving Deposit Insurance Fund (TMSF) has seized the Gülenist bank, Bank Asya, and shares belonging to 122 real and judicial shareholders of the bank, including Kaynak Holding, Ortado?u Tekstil and Forum ?n?aat, have been transferred to the TMSF. Some of the shareholders that have been deprived of their shareholding rights are known to be financers of the Gülenist Movement, such as Naci Tosun (Kaynak Holding's affiliate Sürat Bas?m), Ali Akbulut (Ortado?u Tekstil) and Forum ?n?aat. Officials said that the decision was not a political one but mainly due to Bank Asya's negligence to meet the technical requirements.

A midnight police raid on the headquarters of Turkey's largest Islamic bank after a banking watchdog's decision to take over the bank's management on Tuesday lacks legal grounds and will likely stir further speculation in financial markets, pundits warned. The bank vowed to take legal action in response to Tuesday's decision. Economists highlighted on Wednesday that intervention in the bank's board can only be temporary, because the bank cannot technically be seized unless depositors withdraw their money from Bank Asya. Early on Wednesday, loyal Bank Asya clients flocked to branches across Turkey to shore up the Islamic lender with new deposits.

Turkey’s banking regulator took control of Bank Asya, stepping up a year-long campaign against the Islamic lender a day after self-exiled Muslim cleric Fethullah Gulen criticized the government from his base in the U.S. The Savings Deposit Insurance Fund, or TMSF, the agency responsible for resolving failed banks, appointed a new chief executive officer and board of directors late Tuesday, the bank said in a filing. Its activities will continue without “any disruption” under the new management. The government’s move against Bank Asya has been expected for quite some time now. The timing of the Bank Asya move intends to minimize the damage of the decline in investor confidence.

The UK and the Islamic Development Bank (IDB) have signed a new Memorandum of Understanding to help boost business opportunities and create jobs for thousands of women across the Middle East and North Africa. The Arab Women's Enterprise Fund will see the IDB and the Department for International Development working together to improve the competitiveness of women entrepreneurs in the Arab world. It will also address legal and cultural barriers that block women getting ahead in business. DFID will contribute £10 million to provide grants to help poor women access markets. IDB will match this with a further £10 million in Sharia-compliant Islamic finance.

Aston Martin has plans to reveal an overhauled model lineup at the Geneva auto show in March. Investindustrial S.p.A., owner of 37.5 percent of Aston Martin’s shares since 2012, has now announced new cash investments into the automaker if needed, according to the private-equity firm’s chairman, Andrea Bonomi. He also added that Investindustrial has no intentions in selling the holding in the near future – disclosing that their investment needs to mature over a period of seven to 10 years. The automaker has other main shareholders such as Kuwaiti companies Investment Dar and Adeem Investment Co. Daimler also acquired a five percent stake in the company.

près Salam Epargne et Placement, de Swiss Life/Noorassur, et Amâne Exclusive Life, de Vitis Life, c’est au tour du courtier grossiste Azurite Courtage, basé à Vitrolles (Bouches-du-Rhône), de proposer un contrat d’assurance vie Takaful répondant aux principes de la charia. Intitulé Ethra’a Takaful Famille, il a été lancé au tout début du mois de janvier, en partenariat avec AtlanticLux, filiale luxembourgeoise du groupe allemand FWU AG. Erwin Marzolf, dirigeant de Azurite Courtage, s’est fixé pour objectif un millier de contrats d’ici la fin de l’année.

The British Muslim Awards sponsored by the Al Rayan Bank, formerly known as Islamic Bank of Britain (IBB), aim to recognise a wide range of achievements which cover various aspects of society including business, charity, sport, arts and culture and much more. This year the event took place at the Chateau Impney Hotel, Worcestershire on Tuesday, January 27. Several nominees for each of the categories had been announced prior to the event. Categories include Muslim in the Community, Arts & Cultural Awareness, Young Achiever of the Year, Charity of the Year, Responsible Media of the Year, Religious Advocate of the Year, Muslim Woman of the Year, Best at Sport, among others.

Tawreeq Holdings, an investment group based in Dubai and Luxembourg, has launched an Islamic trade receivables financing platform catering to the Gulf region's small businesses, with plans to tap the capital markets to fund the venture. The firm's CEO Haitham Al Refaie said the concept aims to give smaller firms a funding alternative to bank loans. Besides start-up capital from regional investors, the firm plans to raise additional funds, he added without giving monetary figures. Tawreeq's platform provides sharia-compliant factoring by connecting corporates, suppliers and investors to securitise trade receivables.