CIS

Standard & Poor’s Ratings Address The Growing Takaful Market

Press Release

LONDON, March 30, 2009 -- In a report published today, Standard & Poor's Ratings Services explains the way that its rating approach has been adapted to meet the growth of takaful insurance.

The article, "Standard & Poor's Approach To Rating Takaful And Retakaful (Islamic Re/Insurance) Companies," says that the last five years have seen takaful (Islamic insurance) grow from a niche product servicing relatively limited demand to become a mainstream risk management offering.

"In particular, we have seen rapid growth in the Arab world and an expansion across Europe. A further market development has been the growth of retakaful as a Sharia-compliant version of reinsurance," said Standard & Poor's credit analyst Kevin Willis.

Standard & Poor's has rated a number of Islamic insurers and reinsurers and so is able to comment on the way that the rating criteria have been adapted to address the specifics of this product.

Amanie Business Solutions LLC. launches its Shariah compliant stocks screening service

Amanie Business Solutions LLC. officially launched its web integrated Shariah stock screening service, the service will target new entrants into the Islamic fund management industry.

The web delivery platform of Amanie Screening can be accessed through http://www.amaniescreening.com . Investors and fund managers will be able to view the details and features of the Shariah Stock Screening service.

Amanie is a Shariah advisory and education company seeking to serve the global Islamic finance community.

2nd World Congress of Muslim Philanthropists: Fostering Partnerships

PRESS RELEASE

Conventional to Strategic: A New Paradigm in Giving

March 22-23, 2009 • Abu Dhabi, UAE

Abu Dhabi, UAE: The 2nd World Congress of Muslim Philanthropists (WCMP) concluded today after several key developments had been achieved that indicate an evolution in Muslim giving. The WCMP is a high-level network of donors and foundations established to promote informed and effective giving. The annual Congress itself is a unique event which brings together a diverse set of participants, with the hope that enhanced cooperation between different philanthropies through strategic partnerships will add profound value to address global challenges that affect both humanity and the environment.

Dr. Tariq Cheema, the founder of the WCMP, affirms that the World Congress of Muslim Philanthropists (WCMP)' brings together leaders who understand the risks and opportunities they have are common as global citizens, and therefore realize that collaboration across the lines of faith and race is a necessity and not merely a choice'.

Developments

Global sukuk sales to fall again in 2009

Experts are expecting further drop in Sukuk isssuance in 2009. Local currencies help to support the markets, K. Salman Younis, head of Kuwait Finance House's Asian operations was cited.

UNEP FI Insurance Working Group conducts first-of-a-kind global survey on ESG factors and insurance

The UNEP FI Insurance Working Group, supported by leading academic institutions from the United States and Europe, is conducting a landmark global survey on the understanding and integration of environmental, social and governance (ESG) factors in insurance underwriting and product development. The nature and scope of this survey makes it the first of its kind.

The core objectives are to:

- Assess the understanding and integration of ESG factors in insurance underwriting and product development globally
- Assess the financial materiality of ESG factors in insurance underwriting and product development
- Provide recommendations for sustainable insurance underwriting
- Provide research input for potential projects on other core insurance processes (e.g. investment, claims management, and sales & marketing)
- Establish a solid business case for the development of "Principles for Sustainable Insurance"

Visit http://www.unepfi.org/events/2009/survey to find out more and participate.

Vatican related newspaper: Islamic finance suggests ideas for Western financial crisis

Loretta Napoleoni and Claudia Segre suggesting in the Vatican related L'Osservatore Romano, that Islamic finance offers ideas for the Western financial crisis. Citing the main concepts of Islamic finance and emphasizing specifically Sukuk.

The original article is in Italian linked via Source.

President of IDB addresses the 5th World Islamic Economic Forum

Press Release

Jakarta, 3rd March, 2009

The Islamic Development Bank Group (IDB Group) provided “Gold Sponsorship” to the 5th World Islamic Forum WIEF being held in Jakarta, Republic of Indonesia. In his speech in the Leadership Panel on “Innovative Solutions to Global Challenges”, HE Dr. Ahmad Mohamed Ali, President of the IDB Group praised WIEF for addressing these critical topics, and emphasized three avenues to new innovative solutions to meet global challenges, namely, ethics-based rather than rule-based financial governance structure, investment partnership with the poor and the vulnerable, and unleashing the God-given potential and innate strength of the full human resources. In his speech, he briefed the participants on IDB Group activities in meeting global challenges.

The first day of the Forum included two panel sessions titled “Leadership Panel” and “Global CEO Panel” followed by four plenary sessions namely; Beyond Scarcity: Overcoming the Global Food Crisis, Paving Greener World: Creating a Future for Alternative Energy, Stemming the Tide of the Global Financial Crisis, and Global SMEs: Business Beyond Boundaries.

Islamic Securitization - The Right Way Forward?

Heiko Hesse, Andreas Jobst and Juan A. Sole published on RGEmonitor on 13 February an analysis regarding Islamic Securitization and the grown interest for Islamic finance during the financial crisis.

Islamic finance is driven by the general precept of extending religious doctrine in the shari’ah to financial agreements and transactions. Predatory lending, deteriorating underwriting standards, and a series of incentive problems between originators, arrangers, and sponsors, of which all have infested the conventional securitization process, belie fundamental Islamic principles.

The article linked in the source relates the characteristics of this form of securitization to calls for enhanced disclosure and standardization, ratings agency reforms, and better transparency of origination and underwriting practices in conventional structured finance. In particular, it assesses the potential of conflicts of interest (which became apparent in the U.S. subprime mortgage crisis) to contaminate the integrity of the securitization process if it were conducted in compliance with shari’ah principles.

Turkey: Treasury to issue non-interest bonds

The Treasury of Turkey announced it will sell bonds linked to income at four state enterprises. The Treasury will issue the bonds in Turkish Liras and dollars Jan. 28 after collecting bids Jan. 26 and 27. The total issuance will be YTL 1.89 bn, or USD 1.15 bn. The papers will be linked to income at four state enterprises, namely oil company TPAO, the state stationary office DMO, the government-run airports authority DHMI and the coast safety authority, or KIYEM. The Treasury statement did not clarify whether the new revenue-index bonds were compliant with Islamic investment principles. Last month, Selim Ye?ilba?, the head of the international finance markets department at the Turkish Undersecretariat of Treasury, said to Hürriyet Daily News & Economic Review the new borrowing method would be "based on rent certificates."

Islamic Microfinance

Dear All,

Please post here any information, concepts and ideas to foster Islamic Microfinance.

Best regards,

IslamicFinance.de

Academic Research Papers

Dear Members,

Please share your opinion about the following proposal in regard to

- Academic Research Papers

This forum could facilitate to publish your research papers and having them rated by peers afterwards. This would speed up the time from production to publishing tremendously compared to traditional journals.

It also gives a chance to see unusual papers published, however, a good number of submissions might be of lower quality at the same time.

The action question: Is there interest in the community to use such a platform in this way???

Please comment!!!

New IFSB documents on Capital Adequacy and Liquidity Management

The Islamic Financial Services Board (IFSB) released on 1 April that the IFSB Council adopted two documents to further facilitate efforts towards enhancing the soundness and stability of the Islamic financial services industry.

In its 12th meeting held at the Islamic Development Bank's (IDB) headquarters in Jeddah on March 26th 2008, the Council of the Islamic Financial Services Board (IFSB) resolved to approve two documents that aim to further facilitate efforts towards enhancing the soundness and stability of the Islamic financial services industry. The two documents are:

Guidance Note in Connection with the Capital Adequacy Standard: Recognition of Ratings by External Credit Assessment Institutions (ECAI) on Shari'ah-Compliant Financial Instruments (Guidance Note)

Technical Note on Issues in Strengthening Liquidity Management of Institutions Offering Islamic Financial Services: The Development of Islamic Money Markets (Technical Notes)

Guidance Note in Connection with the Capital Adequacy Standard: Recognition of Ratings by External Credit Assessment Institutions (ECAI) on Shari'ah-Compliant Financial Instruments (Guidance Note)

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Gassner's picture

Peer to Peer in Banking & Development

Recently I came across the website www.kiva.org - which happened to be an Internet based charity. What they do? They connect those people who need a microfinance with those small scale donors previously not accessible. It brings together people willing to lend a 25 $ with those who need a 500 $ for a cow, and syndicates it with different lenders globally. A fascinating technology, showing where you contribute and could make difference.

My belief is, that this peer to peer concept using institutional infrastructure for distribution but relying on a high number of small donors, has a great future. People have confidence to make a difference.

Have a look and think about, how this platform could be used in other ways as well!

Once more: www.kiva.org

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