IslamicFinance.de

Qatar International Islamic Bank (QIIB) has announced the appointment of Ehab Eshehawi (pictured) as its Chief Operating Officer (COO). Eshehawi has more than 25 years’ experience in managing Technology and Operations in the USA, Europe, Asia and Mideast, including 14 years’ experience in the US with Fortune 500 Companies, and 15 years’ experience with international banking institutions. He spent the last 15 years with Arab Banking Corporation and Ahli United Bank focused on supporting banking mergers and acquisitions. Eshehawi is holder of a Bachelor degree in Business Administration, minor in Business Computers Information Systems, and a MBA from the USA.

The Reserve Bank of India (RBI) has begun the process of reviewing regulations on Islamic banking in India. The central bank has set up an internal committee to examine the matter. The three-member panel comprises senior RBI officials, Rajesh Verma, a deputy general manager, department of banking operations, Archana Mangalagiri, general manager, non-banking supervision and Bindu Vasu, joint legal adviser. The demand for re-look at Islamic banking regulations have revived again with the Indian central bank opening up doors for differentiated banks in India – payments banks and smaller banks – to begin with. Supporters of Islamic banking are making a case for Islamic banking in the face of the reforms in the banking sector.

A Chittagong court yesterday placed Mohammad Solaiman, director of Shahjalal Islami Bank Ltd, on a five-day remand in a case filed for misappropriating Tk 140 crore. Solaiman was on remand for seven days once before. Referring to an investigation of the bank, Farman R Chowdhury, managing director of the bank, said Solaiman had influenced the bank to lend Tk 140 crore to SK Steel and gave false assurances about the loan and Solaiman's company Paradise Corporation took over Tk 18 crore as bribe from SK Steel for this. On April 13, the case was filed accusing Solaiman and others.

The UAE is emerging as a serious player in the Islamic banking market with total Islamic banking assets growing to about $95 billion (Dh348.9 billion) in 2013 compared to $83 billion in 2012, according to a report by Dubai Chamber of Commerce and Industry based on a recent study by Ernst and Young. The report shows that the compound annual growth rate (CAGR) for Islamic banking assets in the UAE is expected to be about 17 per cent over the period 2013-2018. The Dubai Chamber report, however, points out that many Islamic retail banks suffer from lower profitability than the conventional banks, mainly due to higher expenses attributed to complex products, lengthy process steps and more interfaces.

Commercial Bank of Kuwait ( CBK ) was granted permission by the Central Bank of Kuwait to issue KWD 120 million (USD 425 million) in Basel III-compliant bonds, which could complicate the process of CBK converting into an Islamic bank. CBK has had to write off loans that have significantly impacted its profitability and may be the reason the bank needs to issue capital-raising bonds. However, issuing capital raising bonds may complicate the conversion process since Basel requirements place limitations on the call provisions included in bonds issued to raise capital. The bank will continue to have an interest-bearing liability for five years, which is much longer than the typical period for a conventional bank that has converted to an Islamic bank.

Qatar Islamic Bank (QIB), Noor Bank and Warba Bank, the mandated lead arrangers, announced the successful closure of a $155m Shariah-compliant receivable backed syndicated financing facility for a UAE-based Jafza entity. The facility is a transaction that enabled the obligor to securitise its future receivables guaranteed by multinational oil and gas companies. Noor Bank acted as lead arranger and bookrunner for the facility besides its role as the account bank, documentation bank, Shariah-coordinator, as well as investment and security agent. The facility was designed to refinance existing debt and finance the company’s future capital expenditure.

The Commission Bancaire of the Bank of Algeria decided on July 3, 2014 to put Al Salam Bank Algeria under temporary administration, due to differences between certain shareholders of Al Salam Bank Algeria, who were also the founders of the Bank.

The chairman of the Board of Directors of Jaiz Bank Plc, Umaru Mutallab, has charged the Central Bank of Nigeria (CBN), and other regulatory authorities in the banking sector to urgently consider developing Sharia-compliant liquidity management instruments for non-interest Islamic banks to invest in. Moreover, the process needed to be expedited to create a level playing field for all the participants in the financial service sub-sector including micro, small and medium enterprises (MSMEs) that so badly needed non-interest loans for their businesses, he added. Meanwhile a communiqué issued by Maidah Foundation, a network of Nigerian Muslim women entrepreneurs, prayed the federal government to strengthen the role of Islamic organisations in the creation of funds for the Nigerian entrepreneurs.

Malaysia's largest Islamic bank, Bank Islam Malaysia Bhd, is revising its base financing rate (BFR)to 6.85% per annum from 6.6% per annum effective Friday. Bank Islam in a statement on Thursday said the revision is in line with Bank Negara Malaysia's recent move to increase the overnight policy rate (OPR) by 25 basis points to 3.25%. The last revision in Bank Islam's BFR was on May 16, 2011, when the rate was revised from 6.3 % to 6.6%.

Fitch Ratings has warned that a merger plan by Malaysia’s second largest bank CIMB Group with RHB Capital Bhd and Malaysia Building Society Bhd (MBSB) to create the country’s biggest lender is fraught with risks. Fitch said the merger could weaken capital buffers for CIMB if not funded by sufficient new equity, adding that any move to rationalise branches and staff could be “politically unpalatable”. Furthermore, weakening credit growth and asset-quality pressures in the overall banking system will not make the process any easier. On the other hand, a successful merger would provide a stronger domestic platform from which CIMB’s offshore aspirations could continue to expand.

Tamkeen and BMI Bank have announced an extension of their partnership providing Sharia-compliant financing to local enterprises. This marks the fourth contribution of BD10 million by BMI Bank, expanding its portfolio to a total of BD40m whilst the total value of the scheme is BD302m. Initially launched in November 2010, the joint scheme offers small and medium enterprises (SMEs) including startups, a suite of financial products at a competitive cost. Enterprises are eligible to receive financing ranging from BD10,000 to BD500,000. All corporations with valid commercial registrations in the kingdom can apply to benefit from the scheme, which also features repayment options of up to 10 years with a grace period up to two years according to finance procedures.

Banque Centrale Populaire – BCP a signé un partenariat stratégique avec Guidance Financial Group. Anticipant la promulgation de la nouvelle loi bancaire autorisant la création de banques islamiques au Maroc, la Banque Centrale Populaire (BCP) travaille discrètement depuis deux ans déjà sur le lancement d’une filiale dédiée à la finance islamique. Outre la mise en place des ressources humaines qualifiées et l’adoption d’un système d’information adéquat, la BCP s’est assurée l’expertise de Guidance Financial Group. Sur le marché des particuliers, Guidance propose notamment des produits conformes à la Charia pour l’achat immobilier et le financement des biens de consommation.

CIMB Group Holdings Bhd, RHB Capital and Malaysia Building Society (MBSB) have received Bank Negara Malaysia's approval to start merger talks which would result in the creation of a mega Islamic bank. They announced in a joint statement on Thursday that under the corporate exercise, the proposal was to merge the businesses of both RHB and CIMB. The corporate exercise included plans to create an enlarged Islamic banking franchise with MBSB. The three parties have entered into a 90-day exclusivity agreement to negotiate and finalise pricing, structure, and other relevant terms and conditions for a proposed merger.

Turkish Islamic lender Bank Asya has decided to sell its stakes in two subsidiaries for TL 132 million ($62 million). In a statement to Borsa ?stanbul (BIST), Bank Asya said it is selling a 24.18 percent stake in Turkish construction firm Tuna Gayrimenkul for TL 62.8 million. The bank also said it is selling another construction company, Nil Yönetim Hizmetleri, for TL 69.25 million. The move comes amid efforts of Bank Asya to raise capital. Meanwhile, Qatar Islamic Bank and Bank Asya have reportedly ended exclusive talks over QIB acquiring a stake in the Turkish lender, with valuation concerns said to be behind the decision. Turkish state bank Ziraat may now be the most likely partner for Bank Asya.

Turkish lender Bank Asya announced on Sunday that their corporate governance rating had increased in June over its score from last year. The bank released the figures in an announcement addressed to the Public Disclosure Forum (KAP). According to a recent report prepared by the Capital Markets Board (SPK), Bank Asya's corporate governance rating increased from 84.20 in June 2013 to 90.85 in June of this year. The founders of Bank Asya are known for being affiliated with the Hizmet movement, inspired by Islamic scholar Fethullah Gülen. News reports circulated earlier this year indicating the government had attempted to sabotage the bank by withdrawing nearly one-fifth of the bank's deposits.

Bank Asya said on Wednesday it has mandated Goldman Sachs as its financial advisor for a strategic partnership, without providing further details. Bank Asya shares traded on the Borsa ?stanbul (BIST) were down 3.5 percent on Wednesday. In March, the Qatar Islamic Bank (QIB) said it had entered into exclusive talks to buy a stake in Bank Asya without giving further details. Bank Asya also said last week it mandated its management to possibly sell its subsidiaries. The bank was earlier targeted by government officials who claim alleged irregularities in the bank. The government has however failed to prove these allegations.

Some of the major Islamic banks are now planning to drop the word “Islam” from their names. In January, Dubai-based Noor Islamic Bank changed its name to Noor Bank. Abu Dhabi Islamic Bank (ADIB) plans to call itself Abu Dhabi International Bank when operating abroad. In both cases, the changes are part of the banks’ plans to expand. They aim to move well beyond a relatively small group of customers who stress religious permissibility, to a much larger customer base for whom pricing and service quality are key. This approach could help Islamic banks establish themselves globally and appeal to larger numbers of non-Muslims as well as Muslims.

The Board of Directors of Alizz Islamic Bank has announced the appointment of Salaam Said al Shaksy as the Chief Executive Officer of the bank. Al Shaksy comes with over 22 years’ experience in retail as well as wholesale banking. He previously held the position of CEO in several local and international banks and financial institutions such as National Bank of Oman, Dubai Bank and Dubai Islamic Investment Group. Currently, Al Shaksy is Chairman of Oman’s Investment Stabilization Fund. He is also a member of the Board of Directors; member of the Board of Executive Committee and Chairman of the Tender Committee of Al Rafd Fund (Oman’s Government funded SME fund); and a Board Member of the College of Banking and Financial Studies set up and supervised by the Central Bank of Oman.

Barwa Bank , Sharia compliant banking service provider from Qatar, has announced the opening of a representative office in Dubai International Financial Centre (DIFC). ?Currently in its fifth year of operation, Barwa Bank enjoys strong relations with major corporates, an increasingly growing SME portfolio and one of the fastest growing retail banking activities in Qatar. This momentum is expected to increase in 2014, as it continues to build up activities. This is the first time Barwa Bank has opened an office overseas and is in line with the bank's plans to develop the Sharia-compliant financial market outside as well as within Qatar, said Khalid Al Subeai, Acting CEO at Barwa Bank.

Standard Chartered Saadiq, the Islamic banking division of Standard Chartered Bank, opened its first dedicated Islamic Banking Centre in the UAE at the Al Khalidiya Branch in Abu Dhabi. The launch of Saadiq Islamic Banking Centre comes in response to the increasing demand for Islamic banking service, the bank said. Standard Chartered has the largest retail distribution network among international banks operating in the UAE with 11 branches, five Electronic Banking Units and more than 90 ATMs and Cash Deposit Machines spread across the country. Standard Chartered Saadiq is the only international bank offering Sharia-compliant retail banking services in the UAE.