IslamicFinance.de

Dear Reader,

On the occasion of the 10th anniversary of IslamicFinance.de please find at the hyperlink below the relaunch of the newsletter.

http://www.islamicfinance.de/files/20140529%20IslamicFinance%20dot%20de%...

Any new issues will be announced to our registered users of IslamicFinance.de and to the members of the related LinkedIn Group of IslamicFinance.de.

If you wish to register please go to http://www.islamicfinance.de/?q=newsletter/subscriptions or become member of the LinkedIn Group: http://www.linkedin.com/groups?mostRecent=&gid=147616&trk=my_groups-tile...

Enjoy reading! And if you do, please consider sharing the free newsletter with your friends & colleagues by forwarding or subscribing an internal email address to forward it your entire firm.

NB: I appreciate feedback to improve the content and better understand what readers are looking for. Please allow time for reply, which I may not be able to give to all enquiries after sending out the newsletter.

All the best,

Michael Saleh Gassner

Abu Dhabi Islamic Bank PJSC (ADIB), which bought the local retail assets of Barclays Plc (BARC) last month, is weighing whether to change its name as it targets more non-Muslim customers beyond its home market. The lender may change to Abu Dhabi International Bank outside the nation to lure customers drawn to ethical banking, Tirad Mahmoud, chief executive officer of ADIB, said. This could help capture a loan market that’s about 200-times the size of Shariah lending. With 60 percent of U.A.E. residents already holding bank accounts, faster growth opportunities for ADIB may need to come from international markets. The lender’s purchase of the Barclays asset was a rare chance to secure 110,000 new customers at home.

Bank Islam Malaysia Bhd is targeting to achieve a total of 140,000 savings and investment accounts with total deposits of RM500 million in its next Al-Awfar campaign. The campaign will likely be held in the second half of this year until year-end. Following this, the bank would have a total of one million Al-Awfar accounts with total deposits of RM2.5 billion. For the next Al-Awfar campaign, more than half a million ringgit is planned to be spent on advertising and promotion. To participate, new customers are required to open accounts with a minimum deposit of RM1,000 while existing Al-Awfar account holders can top up with a minimum deposit of RM1,000. Depositors have to maintain a minimum balance of RM1,000 in their accounts at all times for a four-month period to entitle them to take part in the campaign.

Bank Islam Malaysia Bhd will spend more than RM5 million this year on its corporate social responsibility (CSR) programmes to cater for various segments of society nationwide. The CSR programmes planned this year include housing projects for the needy in Johor, which involved the rehabilitation and construction of houses for 22 families costing more than RM4 million. So far, the bank has built or rehabilitated houses for more than 151 improverished families in Kelantan, Terengganu, Kedah, Pahang, Perak and Sarawak. The bank is also looking to extend its CSR activities in Sabah as there is still a need for houses for the poor as well as basic infrastructure like surau and others.

Iranian businessman Mahafarid Amir Khosravi, convicted of masterminding a $2.6 billion banking scam, was hanged on Saturday in Tehran''s Evin prison. He was sentenced to death after being convicted of corruption on earth through bribery and money laundering. Revelations about the scandal swept Iran in 2011 when prosecutors uncovered a private umbrella group, led by Amir Khosravi and his brothers. Over the space of two years, Amir Mansour Aria Development Co bought 40 companies with forged letters of credit obtained from several major banks whose managers they had bribed. In addition to Amir Khosravi, three others have reportedly been sentenced to death.

14 Iranian banks are involved in the famous 2011 $3-billion embezzlement case. Iran's prosecutor general Gholam Hossein Mohseni Ejei said that state-run Bank Saderat and Bank Melli were the main banks involved in the case. The prosecutor general went on to say that seven MPs who were accused of involvement in the case acquitted due to lack of evidences. Thirty-nine persons were accused of involvement in the case, and several high-ranking officials including certain persons in judiciary, parliament and presidential administration were persecuted or arrested. In addition to death and life sentences, some defendants banned from government jobs.

RAM Ratings has assigned AA3/Stable/P1 financial institution ratings to Turkiye Finans Katilim Bankasi AS (the Group). RAM moreover assigned an AA3/Stable rating to the proposed RM3.0 billion Sukuk Murabahah MTN Programme to be issued by the Group's wholly owned asset leasing subsidiary, TF Varlik Kiralama AS. The assigned ratings reflect a high likelihood of extraordinary support from the Group's major shareholder, The National Commercial Bank (NCB). Turkiye Finans enjoys sound earnings which support its capital position. Although its asset-quality indicators are healthy, they may weaken amid Turkey's more challenging economic and political backdrops. On the other hand, Turkiye Finans' ratings are constrained by its limited domestic franchise and relatively weak funding position.

Abu Dhabi Islamic Bank (ADIB) agreed a $2 billion debt overhaul with mortgage company Amlak Finance. ADIB, part of a six-member creditor committee negotiating Amlak's restructuring, signed a tentative agreement that's being considered by the decision-makers on the Amlak side, CEO Tirad Mahmoud said. The prospective accord includes a temporary waiver on a certain part of the principal that you recapture later if Amlak achieves certain targets, he said. Amlak sought an extension on $2 billion of loans after property prices in Dubai slumped during the credit crisis that began in 2008.

Moody's has assigned Bank Al Bilad a long-term credit rating of A2 and short term credit rating of P-1. Moody’s said that the ratings on Bank Al Bilad reflect the banks strong financial position, strong asset quality and coverage metrics, solid capitalisation levels and strong profitability resulting from growing business volume, efficiency gains and the solid contribution of non-funded revenues, in addition to the strong fundamentals of the Saudi economy supporting the growth in the banking sector. Moodys emphasised the importance of Islamic finance and associated opportunities in the Kingdom of Saudi Arabia.

Dubai Islamic Bank (DIB) will purchase a 25 percent stake in Indonesian Islamic lender Bank Panin Syariah. Under the agreement, DIB will jointly manage and operate Bank Panin Syariah along with parent Bank Pan Indonesia, which will remain a controlling shareholder. No purchase price was given for the deal, which will be subject to regulatory approval. The investment will involve DIB accumulating around a 25 percent stake in Bank Panin Syariah in the initial phase, with a view to subsequently increasing its shareholding in the bank to 40 percent. Bank Panin Syariah has a network of 10 branches and held assets worth 4.3 trillion rupiah ($376.8 million) at March 31.

Henry Thompson will take over the role of London-based Gatehouse Bank's new boss with immediate effect. He substitutes current chairman and chief executive Fahed Faisal Boodai, who will remain in his role as executive chairman. Thompson had been working in Shariah-compliant finance at Arcapita as head of legal before. Gatehouse, which offers investment banking services, has been aiming to get a foothold in London’s wealth management sector and recently opened a new office in Mayfair. Boodai said Thompson brings with him sector knowledge, which complements the activities of Gatehouse Bank.

Global Islamic banking assets with commercial banks are on course to exceed US$3.4 trillion by 2018, fueled by growing economic activity in core Islamic finance markets. Across the six markets of Qatar, Indonesia, Saudi Arabia, Malaysia, UAE and Turkey (QISMUT), the combined profits of Islamic banks broke the US$10 billion mark for the first time at the end of 2013. If the current growth rate continues, the Islamic banking profit pool across QISMUT markets is set to exceed US$25 billion by 2018. There is significant growth potential for the industry. Only a small number of Islamic banking customers have fully transitioned from a traditional to an Islamic banking relationship.

Dubai Islamic Bank is to purchase a 25 percent stake in Indonesian Islamic lender Bank Panin Syariah, it said in a statement on Monday, adding it could ultimately increase the holding up to 40 percent. No purchase price was given in the statement, which said the transaction was still subject to regulatory approval. Bank Panin Syariah, which was listed in Indonesia in January, is the Islamic subsidiary of Bank Pan Indonesia .

Jaiz Bank Plc has appointed Mahe Abubakar as the Executive Director in charge of Business Development. Until his appointment, Mahe was a General Manager/ Group Zonal Head of Zenith Bank Plc in charge of the Northwest region. He has a Master Degree in Business Administration from the Ahmadu Bello University, Zaria and he is a qualified Dealing Clerk of the Nigerian Stock Exchange. Mahe has attended several trainings in and outside Nigeria. His appointment has been confirmed by the Central Bank of Nigeria.

Jaiz Bank will boost its net worth of investment in Nigeria to N22 billion by July, according to the bank's Managing Director Mr. Muhammed Islam. The bank's present investment stands at N15 billion and will rise to N20 billion by the end of June by sponsoring projects worth N7 billion in the period. The Jaiz bank boss explained that most of the investments were in home-financing, automotive, industrial sector, imports and exports among others. He disclosed that the bank has a deposit base of N25 billion and a working capital of up to N35 billion. Islam said the bank would soon secure licence from the Central Bank of Nigeria (CBN) to expand its operations to all state capitals in the country, to enable more customers access its services.

Islamic finance, banking, and takaful has a large potential in the US and Canada despite several setbacks and various obstacles and hurdles. In terms of the United States, a 100% truly Shariáh compliant takaful company may not be possible at this time in the USA as many states have limited investment of collected premiums to non-Shariáh compliant investment grade rated bonds. However, the US has seen two major sukuk issuances and there is a large potential for further sukuk. In terms of Canada, there have been no sukuk issuances and there are no Islamic banks. The only positive ruling for Islamic finance in Canada thus far has been the permission of Islamic mortgages under Canadian law. Aside from constitutional hurdles and the lack of regulations and laws, which permit Islamic banking in North America, many people have a fear of Islam and the words Shariáh and Islamic.

Contents
Revised Shariah Screening Methodology: 1
Expands ICM’s Global Reach
SHARIAH
New Shariah Advisory Council Resolutions 3
DEVELOPMENT
Region’s First Structured Covered Sukuk 7
Royal Award for Islamic Finance Calls for Global 9
Nominations
SC and Autoriti Monetari Brunei to Strengthen 9
Efforts in Greater Cross-border Activities
SC Leads Islamic Finance Taskforce to Publish a 10
Report on Enhancing Infrastructure for ICM
REGULATORY
IFSB-IOSCO-SC Collaborate on Disclosure 11
Requirements for ICM Products
SC Revises Equity Guidelines for SPACS 12
Technical Note on the Application of SC’s 13
Guidelines In Relation to Non-Tradable and
Non-Transferable PDS and Sukuk
FEATURES
2013: Another Resilient Year for the Global 14
Islamic Finance Industry
Global Islamic Funds Industry: Achieving 18
Growth Under Challenging Times
Harmonisation of Shariah Rulings 22
in Islamic Finance
News Round-up 29
STATISTICAL UPDATES
Malaysian ICM – Facts and Figures 32
Free download below at source:

Bahrain-based Al Baraka Banking Group B.S.C (ABG) announced a net profit of US$ 67 million for the first quarter of 2014, reporting an increase of 1% over the net profit of the same period of last year. While total assets increased by 1%, total financing and investments by 2% and customer accounts by 1% at the end of March 2014 compared to the end December 2013. Towards the end of 2013 and the first quarter of 2014, the subsidiary units of the Group continued their expansion plans by opening new branches, with 54 new branches in 2014. The group plans to open another 84 new branches in 2014, which will raise the total branch network to 569 branches, spread over 15 countries and providing employment to over 10,000 employees.

Of the 30 listed banks in Bangladesh, 13 declared higher dividends than in the previous year, eight announced lower dividends, and eight the same, according to Dhaka Stock Exchange. Dutch-Bangla Bank came up with the highest amount of dividends—40 percent cash—for its general shareholders. ICB Islamic Bank gave no dividends. With the mixed trend in dividend declaration, the banking shares were unable to draw the investors' attention in the last couple of months, as corporate declarations from the sector could not fulfil retail investors' expectations. The banks' income from lending business declined in 2013 than the previous year due mainly to the political volatility. But thanks to the central bank's move of relaxing loan provisioning rules at the yearend, the banks could recover losses.

Kingdom Tower, the Saudi skyscraper set to be the world’s tallest building, will probably have construction funding in place by the end of the first half. The developer Jeddah Economic Co. is in talks to bring in Riyadh-based Alinma Bank as an adviser and lender. BNP Paribas (BNP) SA is currently advising the company, but the size of loan being sought hasn't been disclosed. The builder has been looking for financing since at least April 2012. Kingdom Holding Co. and partners, including tower builder Saudi Binladen Group, are trying to arrange funding after investing 8.7 billion riyals ($2.3 billion) in the project. They are seeking a bank loan with a maturity of five to seven years.