Business Recorder

Troubled Bahraini bank Arcapita files reorganisation plan

Bahrain-based Arcapita Bank, the first Gulf company to file for bankruptcy in the United States under Chapter 11 rules, has submitted a plan to reorganise the company. The plan, filed with the court handling the chapter 11 case in New York, represents an effective way to implement a comprehensive restructuring and maximise recoveries to creditors and other stakeholders. It will be the subject of a hearing within 45 days and must then be approved by creditors.

Islamic microfinance: experts speak about potential, prospects

The seminar titled "Islamic Microfinance - Approaches & Practices: A Case Study of Akhuwat" was held in Pakistan last Wednesday. Various initiatives of Islamic microfinance in Pakistan, their philosophies and methodologies were highlighted in the seminar and the case of Akhuwat Foundation was discussed as a case study. It was also observed that Islamic microfinance was still in its evolution, and speakers therefore gave recommendations for further growth and strengthening the operations of Islamic microfinance institutions.

SBP to launch media campaign for promotion of islamic banking

A mass awareness campaign to increase public trust and confidence in Islamic banking, to be led by the Islamic banking industry with the support of State Bank of Pakistan (SBP), is being launched shortly. According to Deputy Governor of SBP Kazi Abdul Muktadir, the Islamic banking industry is still facing many challenges which include low awareness and understanding of public at large about Islamic banking and its distinction over conventional banking. The campaign is expected to lead to further acceleration in the growth of Islamic banking.

Meezan Bank to provide Shariah-compliant financing

Meezan Bank has become the first bank in Pakistan which offers Shariah-compliant agricultural financing by extending a Shariah-compliant financing facility to the agriculture industry of Pakistan. Adhering to the financial arrangement, the bank will sell DAP, urea, pesticides and seeds to its clients on a Murabaha basis. Expansion of the scope of this facility to other geographical areas is planned. Furthermore, a comprehensive Agricultural Financing Policy and detailed procedural manuals for this initiative has been developed.

Global Islamic Microfinance Forum to be held in Dubai

The Global Islamic Microfinance Forum will be held on 8th to 10th December in the World Trade Centre in Dubai. The purpose of the forum is to porpagate Islamic microfinance across the world and to strengthen the dialogue with international donor and development agencies.

New rules for IBIs

Until now, rules and procedures Islamic Banking Institutions (IBIs) in Pakistan have been following were too general and occasionally not sufficiently specific. In fact, they were not much different from the conventional banking in terms of rate of return on deposits. However, on 19th November a landmark was set by the issuance of detailed instructions by the State Bank.

The instructions will serve to improve transparency and disclosures and bring standardisation in the IBIs' profit and loss distribution policies and practices. As the instructions determine, each pool of deposits established by IBIs would play the role of a virtual enterprise. It will have explicitly demarcated sources of funds, ownership of specific assets and income and expenses.

Dana Gas restructures $920 million sukuk

Dana Gas has eventually agreed upon restructuring its sukuk worth $920 million. Thus, it will potentially avert the seizure of its assets in Egypt. According to Dana's statement on Wednesday, the company intends to pay its sukuk holders a mix of cash and new bonds which will be split between a sukuk and a convertible. There is no information on what proportion would be in cash. This solution to Dana's default is believed to serve best the interests of all stakeholders.

Second National Islamic Microfinance Conference held

The second National Islamic Microfinance Conference, which was jointly organized by the State Bank of Pakistan, University of Veterinary and Animal Sciences (UVAS) and Farz Foundation, was recently held. At the conference, it was discussed that it was necessary for State Bank of Pakistan to develop a new policy instrument to deal with the financial needs of the small businesses. It was further noted that skilled people in the Islamic micro-finance industry were needed. A suggestion was made for Wafaqul-Madaris to introduce Islamic microfinance as a subject in order to be of help in guiding the banks who are working in this sector after studying.

International Conference in Indonesia: poverty alleviation: Islamic microfinance termed best solution

CEO of AlHuda Centre of Islamic Banking and Economics - Zubair Mughal - explained at an International Microfinance Conference in at an International Microfinance Conference that in the time of the global financial crisis even developed countries are making efforts to fight the global issue of poverty. The conference was organised by the Government of Indonesia together with the World Bank. 600 people took part in the conference, among them delegates and experts from 30 different countries. Some of the prominent participants were President of Indonesia Dr Susilo Bambang Yudhoyono, Noble Prize Winner Dr Muhammad Yunus, Director of Global Microcredit Summit Campaign Dr Larry Reed, and Mayada El. Zoghbhi from the World Bank.

Read more on:

Issuance of Sukuk Regulations, 2012 drafted by SECP

The Securities and Exchange Commission of Pakistan (SECP) has drafted the Issuance of Sukuk Regulations which are now being published for public comment. The regulations focus on providing more comfort to the Sukuk investors and shall facilitate the issuance of Islamic bonds.

See more under:

BoK opens Islamic banking branch at Mingora

Bank of Khyber (BoK), the new Raast Islamic Banking Branch at Mingora was formally inaugurated by Engr Humayun Khan on Friday. At the ceremony, Engr Humayun Khan expressed his appreciation of the vital role of BoK in province's socio-economic uplifts activities. Furthermore, he said that the government extended its full support to BoK. He also pointed out the bank's importance for the implementation of the self-employments schemes of the provincial government in order to reduce the unemployment among youths.

Syndicate content