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TMSF fund says Bank Asya will either be sold or merged within this period, or liquidated if that not possible.

Turkey's Bank Asya will not be returned to its original shareholders after being seized by the government last year, the deposit insurance fund that now owns the bank said, adding that it would pursue liquidation if a buyer is not found within three months. Within the framework of the existing legal situation, the return of the bank to its (shareholders) is not possible, the Deposit Insurance Fund (TMSF) said on Tuesday, adding that it had given the bank a three-month deadline from Feb. 29 to find a buyer or be merged. If this is not possible, its liquidation will come on to the agenda, the TMSF said.

There are nearly 500,000 high net worth individuals (HNWIs) in the GCC alone; these clients hold roughly $1.7 trillion of assets. A large majority of them are Muslims. If you look at the larger banks, be it in Switzerland, or in other established jurisdictions, it is mainly in the conventional banking space that wealth management solutions are offered to clients. The low oil prices have had an impact on liquidity and the cost of funds. As the demand for Islamic wealth management solutions is primarily from the GCC region and the sentiments in the region are weak due to the low oil prices, investors could take the wait and watch approach.

Bahrain-based Ithmaar Bank reported an increase in total income and operating income from its core retail banking operations during 2015 but this improved performance was impacted by recognition of certain investment related impairment provisions. Net income before provisions for impairment and overseas taxation increased 169.2 percent including a 18 percent increase in Operating Income. Overall, the Bank recorded a net loss of $46.4 million in 2015. This compares to a net loss of $8.8 million in 2014. This was mainly due to significant impairment provisions of $95 million in 2015, compared to provisions of $26.1 million in 2014.

Bank of London and The Middle East (BLME) said it would acquire Renaissance Asset Finance as part of efforts to grow its leasing business. Dubai-listed BLME said in a statement the acquisition would be finalised in early April, without disclosing a deal size. The Islamic lender helped launch Renaissance in 2014 when it provided a financing line of 35 million pounds, with both firms seeking to fill a funding gap for mid-sized companies. Renaissance offers financing solutions including sale and leaseback transactions, with a maximum advance of 2 million pounds.

Many tout the promise of Islamic banking in Africa, but retail consumers have been hesitant in many markets. hough Muslims make up a large portion of the unbanked population in many target countries, they just weren’t coming into the fold—at least not at a significant rate. This admission may come as a surprise to anyone reading the parade of headlines about ‘unlocking the potential’ for Islamic banking in Africa. There’s been quite a few. While this is still true, the reality on the ground—literally, because we’re talking about retail here—is more complicated than that. In its recent 2016 Outlook, Moody’s Investor Services largely predicted challenging times in African banking due to sinking commodities prices, China’s slowdown and regulatory difficulties.

Turkey plans to sell Islamic lender Bank Asya by the end of May and will liquidate it if a buyer is not found, Sakir Ercan Gul, chairman of the Savings Deposit Insurance Fund (TMSF) that controls the bank said. Gul said that some of the bank's partners have accepted it, some of them have not. The bank will be sold in any case, he added. Last year the government seized the assets of Bank Asya, saying its financial structure and management presented a threat to the financial system, and took over more than 20 companies with ties to Gulen.

Kuwait International Bank (KIB) in 1973 started out as a specialised bank in real estate under the name of Kuwait Real Estate Bank. KIB later helped with the constructional evolution of the country and has since expanded to other areas of the economy. In 2007, KIB converted into a fully-fledged bank operating under Islamic sharia provisions and changed its name. KIB sees the drop in oil prices as an opportunity to expedite the implementation of fiscal reform, in order to mitigate pressures on government budget and diversify the sources of income. Doing so will push forward the wheel of economic development and maintain a sustainable economy in the long run.

Speaking at the launch of the participation banking unit of state-owned Vakibank, President Recep Tayyip Erdogan said that the share of Islamic banking is around five per cent now, but the target was earlier defined to increase this share to 15 per cent by 2025. He stated his opinion that the share should reach 25 per cent instead. In December 2014 Vakifbank’s Board of Directors had authorized the bank to carry out all necessary transactions to obtain financing from Islamic Development Bank (IDB) to pledge capital for the Bank's participation banking project, amounting to $300 million with Turkish Treasury guarantee.

A statement from the deposit insurance fund (DIF) that Islamic lender Bank Asya would either be sold or liquidated by the end of May has no legal basis and its shareholders will never agree to such forced maneuvers, Süleyman Ta?ba?, a lawyer for Bank Asya shareholders said. Selling the bank is not legally possible according to banking law, he explained, adding that the bank's equity capital ratio is still strong; it has TL 1.35 billion in equities and another TL 1.4 billion deposited with the central bank. Plus, the shareholders still hold ownership. Ta?ba? criticized DIF's irresponsible statements, adding that all parties should respect the judicial process that is currently under way with regards to the bank's future.

Qatar's largest sharia-compliant bank Masraf Al Rayan is expected to post annual profit growth of between 8 and 10 percent in 2016, Chairman Hussain Ali al-Abdulla said at the bank's annual general meeting. Masraf Al Rayan reported last month a 3.6 percent rise in full-year net profit in 2015 to 2.07 billion riyals, although its fourth-quarter earnings dipped slightly. Abdulla said the bank had no plans to issue sukuk, or sharia-compliant bonds, this year as there was no need for additional liquidity. Falling liquidity is expected to be one of the main issues facing banks in the Gulf region in 2016, as governments remove cash on deposit to help replace lost revenue from lower hydrocarbon prices.

The government of Azerbaijan announced that it is in talks with the Islamic Development Bank (IDB) on application of Islamic banking instruments in the country. Deputy Economy Minister Sahil Babayev also said that the Bank is ready to provide technical assistance to Azerbaijan, which has a predominantly Muslim population. The primary scope of our model’s project has already been outlined, he added. Azerbaijan, alongside Kazakhstan, is among several central Asian countries creating a more welcoming framework for sharia-compliant banking to attract investments and financing from the Islamic capital market. Babayev faced difficulty to name the exact date of introduction of Islamic banking model in Azerbaijan, explaining it with the number of issues to be solved.

Tunisian Islamic bank Zitouna was the first to succeed in placing on the national financial market in December 2015 the Islamic bonds sukuk for a value of 22.5 million euros. The result exceeded expectations - set at 20 million euros - the management of Zitouna said. at a Forum on Islamic finance held at Kram in Tunis. The Forum was attended by several protagonists of the Tunisian economic and financial scenario like central bank governor, Chedly Ayari, the president of Cmf, Salah Sayel and former finance minister, Jalloul Ayed. Zitouna bank, on behalf of its president Ezzedine Khoja, has announced it is launching a new business plan in 2016-2020 with the objective of becoming the bank of reference in Tunisia and a leading Islamic bank in Africa.

Qatar's largest sharia-compliant bank Masraf Al Rayan is expected to post annual profit growth of between 8 and 10 percent in 2016, Chairman Hussain Ali al-Abdulla said at the bank's annual general meeting. Masraf Al Rayan reported last month a 3.6 percent rise in full-year net profit in 2015 to 2.07 billion riyals, although its fourth-quarter earnings dipped slightly. Abdulla said the bank had no plans to issue sukuk this year as there was no need for additional liquidity. Falling liquidity is expected to be one of the main issues facing banks in the Gulf region in 2016, as governments remove cash on deposit to help replace lost revenue from lower hydrocarbon prices.

Bahraini authorities will discuss with the U.S. Treasury the international banks’ reluctance to deal with Banks in Bahrain and the Gulf because of tight U.S. regulation, Bahrain’s central bank governor Rasheed Mohammed al-Maraj said. The fact that many international banks have curtailed their correspondent services with regional and local banks has affected a wide sector of the population, especially the expatriates, he added. According to Maraj, officials in Bahrain, had met U.S. Treasury officials last November and scheduled another meeting on the issue in April. The U.S. regulations imposed on Bahrain, one of the Gulf’s financial centers, are part of a tougher regime introduced since the financial crisis, include scrutiny of potential tax avoidance and anti-money laundering rules.

Fitch Ratings says tougher operating conditions in Kuwait and the region will translate into slower growth for Islamic banks during the year, albeit in line with industry trends. The Islamic Banks Dashboard published today covers Kuwait's Islamic banking sector comprising five banks (out of 10 domestic banks) which hold a total market share of 39% (by assets). Fitch believes that Islamic financing growth will moderate in 2016 due to a sharper-than-expected fall in oil prices and the resulting impact on the economy and business environment. The sector is, however, expected to remain profitable despite weaker operating income and higher impairment charges.

Jordan Investment Commission (JIC) President Thabet Al Wir highlighted the Jordanian experiments in Islamic banking and halal food as a gate for cooperation with Germany to support the Kingdom's investment and economic environment. At a meeting with a German delegation representing the Federation of German Industries (BDI) and the German Federal Ministry of Finance, Wir described the Jordanian expertise in Islamic banking as top at the regional and international levels. The Kingdom is also among the first countries to accredit the Islamic banking system, he said. The presence of many Muslim communities in Germany provides a chance for the country to benefit from the Islamic system in its banking sector, the JIC president added.

Bahrain-based Al Baraka Banking Group B.S.C (ABG) announced that its total operating income reached one billion dollars in 2015 for the first time since the start of the Group activities 12 years ago due to continued growth in income-generated business at all the Group units, while the net income for the year reached US$ 286 million in 2015, an increase of 4% on the net income achieved in 2014. Similarly, balance sheet items witnessed moderate increases as total assets increased by 5%, total finance and investments by 4%, customer accounts by 2% while total equity increased by 1% as at the end of December 2015 in comparison with the end of December 2014.

Al Baraka Bank Egypt, part of Bahrain's Al Baraka Group (ABG), is planning to pump one billion Egyptian pounds (US$127.7 million) to support Egyptian SMEs, its chairman Ashraf El-Ghamrawy said. The investments, with a five percent interest rate, are in favour of the central bank's initiative to advocate small and medium-sized enterprises. Earlier, Egyptian President Abdel Fattah al-Sisi said the banking sector would inject 200 billion Egyptian pounds ($25 billion) to support small and medium businesses. Within this year, Al Baraka Bank Egypt plans to sign a new partnership worth 200 million pounds with the Social Fund for Development (SFD) to finance small and medium businesses led by the Islamic Development Bank (IDB).

The General Council for Islamic Banks and Financial Institutions (CIBAFI) tackles the profound structural problems in the Islamic Micro and Small and Medium Sized Enterprises (MSME) finance industry. The recent CIBAFI Global Islamic Bankers Survey from 83 Heads of Islamic banks in 35 countries revealed that MSME finance serves as the second key driver of sustainable growth of Islamic banks. Nonetheless, expanding this business line depends on the development of external factors of this market segment, as well as on how Islamic financial institutions can enhance their technical infrastructures in serving MSMEs. CIBAFI has therefore started the initiative to organize a series of Roundtable Meetings on the topic.