IslamicFinance.de

Fitch Ratings is organizing a webinar on September 30th with the title ME Islamic & Conventional banks, wading through COVID-19 and Low Oil Prices. Discussion topics will include: ME Banks Overview (conventional and Islamic); Rating Actions so far; Islamic Banks compared to Conventional Banks (in General); Islamic Finance regulation and standardisation; AI, Fintech in the Region, M&A. There will be an opportunity for Q&A. Please submit your questions via the ‘Q&A’ box within the webinar console or to Melissa Cloquet at melissa.cloquet@fitchratings.com.

Fitch Ratings has been recognised as the Best Rating Agency for Islamic Finance for the fourth consecutive year by The Asset magazine. Fitch has a dedicated sukuk rating criteria and provides takaful-specific considerations within its global insurance rating criteria. It also provides specific consideration to environment, social and governance factors in its ESG scores in rating Islamic banks. Recent landmark deals in which Fitch participated include the first sovereign green sukuk, issued by Indonesia in 2018, and its follow-up issue in 2019 and 2020.

According to Fitch Ratings, Islamic financing and deposits accounted for 27% of total sector financing and deposits at end-2019. Growth in Islamic financing slowed significantly in 2019. Asset-quality metrics deteriorated in 2019, particularly due to pressures in the real estate and contracting sectors, but also in entertainment, hospitality, and retail and wholesale trade. The operating profit/risk-weighted assets ratio also deteriorated due to increased financing impairment charges. Capital ratios have increased over the past four years, while core capital ratios remain below those of conventional banks but the difference has narrowed.