Promotion of Islamic Banking

Source: Business Recorder

We laud efforts of Steering Committee on Promotion of Islamic Banking formed by Honourable Mr Muhammad Ishaq Dar, Finance Minister. The Committee was headed by Mr Saeed Ahmed, Deputy Governor State Bank of Pakistan. The Committee took this task as challenge and utilised their utmost capabilities to frame out the strategies. Alhamdu Lillah after paramount endeavours of Steering Committee a comprehensive frame work has been geared up and handed over to the Finance Ministry for further implementation. Almighty ALLAH may shower his countless blessing to the elements, contributed for this great cause...

Islamic Banking deposits to reach Rs4tr by 2020

Source: Banking Observer

Islamic Banking deposits are expected to reach Rs4 trillion by 2020 attaining a market share of 20 percent of the local banking sector. Speaking at the inaugural session of “Workshop on Islamic Finance for Media Professionals”, Ahmed Ali Siddiqui, Director IBA’s Centre for Excellence in Islamic Finance (CEIF), said that with all financial solutions worldwide Islamic banking was growing rapidly. The special capacity building workshop on Islamic Finance for media professionals was organised by IBA-CEIF recently at the IBA City Campus...

Is Islamic banking more risky compared to conventional banking?

Source: The Conversation

Islamic banks are less risky and more resilient than their counter parts in terms of bank capital requirement and mobilisation of deposits. Somewhat perversely, the global financial crisis presented a big opportunity to the Islamic banking and finance industry. In 2008-2009, the Islamic banking industry was estimated to have experienced asset growth of 31.8% compared to 12.6% in the conventional banking. The Islamic bank total assets range between US$1.88 trillion to US$2.1 trillion in 2016 and are expected to reach US$3.4 trillion by 2018 globally. It provides an alternative...

Germany, Switzerland open up to Islamic banking

Source: Malaysia Times

Germany and Switzerland are the latest European nations to institutionalise and expand Islamic finance within their banking and insurance system, providing more Shariah-compliant services to their domestic Muslim communities and offering extended Islamic banking services for investors as an alternative to conventional finance. One year after the first full-fledged Islamic bank opened in Germany KT Bank, owned by Kuveyt Turk, the largest Islamic bank in Turkey, the German Federal Financial Supervisory...

Financing by Islamic banking entities soars 61pc

Source: Pak Observer

Financing provided by Islamic banking entities in Oman registered a significant growth of 61 per cent to reach RO 2.1 billion at the end of May 2016 when compared to RO 1.3 billion a year ago. Total deposits held with Islamic banks and windows also witnessed substantial increase of 80 per cent to RO 1.8 billion in May 2016 from RO 1.0 billion during the same period in 2015. The total assets amounted to RO 2.6 billion with an increase of about 64 per cent and constituting about 8.2 per cent of the total banking system...

Adissadikin heads RHB Islamic Bank

Source: The Star

In his role as the managing director/CEO of RHB Islamic Bank and head, group syariah business, Adissadikin will be responsible for leading, managing and growing the group’s syariah business, making it into one of the top 3 Islamic banking institutions in Malaysia, while also exploring opportunities for growth regionally. Group syariah business is one of RHB’s key growth areas under its Ignite 2017 transformation programme. Prior to joining the RHB Banking Group, Adissadikin was CEO of Alkhair International Islamic Bank Bhd (AKIIB) since June 1, 2015. From October 2010 to May 2015...

Islamic banking has 13pc share in overall banking industry

Source: Pak Observer

Islamic banking now has a 13pc share in our overall banking industry. But its ability to serve agriculture, small and medium enterprises, poor households and low-cost housing sectors remains low for want of a more diversified range of Shariah complaint products. And, even in corporate financing, Islamic banking institutions (IBIs) are unable to tap unmet requirements because of a lack of needed diversification of financial products. As of March 2016, IBIs’ outstanding financing of the corporate sector was as high as 74.3pc higher than the entire banking industry...

Nasdaq BWise platform for risk and compliance

Source: Banking Technology

The BWise GRC platform will support DIB, the largest Islamic bank in the United Arab Emirates, to continue monitoring and managing its risks, compile and present reports for the board, senior management and regulatory authorities. Mohamed Abdulla Al Nahdi, deputy CEO at Dubai Islamic Bank, says: “Nasdaq BWise was selected because of its user friendliness in one integrated GRC platform. In this way the compliance, risk and internal control departments will all have access to the right information from one single source...

8th World Islamic Retail Banking Conference

Source: Euro Times

Islamic banking has made considerable headway in the past decade. As per reports from IMF, Islamic banking growth has shown a steady growth of 10-15 per cent per year during this period. It has been expanding into nations, which previously had very few or no Islamic financial institutions like United Kingdom and Japan. Countries with Muslim minorities are also contemplating granting licenses for Islamic banking activities. Islamic banks have tremendous scope to keep growing within the niches, compatible with Shariah law and in certain parts of the world, provided they innovate and...

CBI launches Islamic banking window

Source: Zawya

Commercial Bank International (CBI), a Dubai-based conventional lender, has launched its Islamic Banking window -- Al Islami-- which offers a wide range of Shari'ah-compliant financial solutions and banking services aimed at the corporate financial world. CBI's shares are listed on the Abu Dhabi Securities exchange. The initiative is supported by its strategic partnership with Qatar National Bank (QNB), which acquired 40 percent of CBI shares in 2012. Guided by leading international Shari'ah adviser, the Shariyah Review Bureau -- which will provide...

Alizz Islamic Bank fares well in second quarter

Source: Times of Oman

Alizz Islamic Bank said that its financing portfolio reached OMR 247.7 million in the second quarter, registering a growth of 77 per cent from the same period last year and growth of 24 per cent from the end of 2015. Deposits grew by OMR115.7 million from the same period last year representing growth of 120 per cent and by OMR50.9 million from the end of 2015 to reach OMR 212.4 million. Net operating income grew by 90 per cent from the same period last year to reach OMR4.4 million and by 21 per cent compared to the previous quarter. Due to the increase in income...

Looking ahead with the world's first Islamic bank

Source: World Finance

Nearly 40 years ago, Dubai Islamic Bank pioneered the concept of Islamic banking. Today it competes on an equal basis with the world’s largest conventional financial institutions In 1975, history was created when Dubai Islamic Bank (DIB) became the first modern commercial Islamic bank in the world. Before this, customers had no choice but to use conventional banks for all their financial requirements. By incorporating Sharia principles into all its operations, DIB became the pioneer in offering the world an alternative based on fairness and transparency...

Investments and fees lift second-quarter income for Sharjah Islamic Bank

Source: The National

Sharjah Islamic Bank, the largest Sharia-compliant lender in the emirate, said that its second-quarter income increased 28.5 per cent, boosted by investments, fees and commissions. The gain came despite a decline in income from murabaha and leasing, the Islamic banking equivalent of the interest conventional banks make. Net income rose to Dh125.6 million compared to Dh97.7m a year earlier, the Sharjah-based bank said yesterday. Investment, fees, commission and unspecified other income increased to Dh159.4m from Dh82.9m. Meanwhile, income from murabaha and leasing decreased to Dh204.5m from Dh208.2m...

Why market share of Islamic banks is so small in Indonesia

Source: The Jakarta Post

The performance of the Islamic banking industry in Indonesia has yet to satisfy the public’s expectations. Although with a market of more than 200 million Muslims, Islamic banks in Indonesia still face difficulties luring more customers and increasing their assets. For three consecutive years, the market share of the sharia banks in the country stood still at less than 5 percent According to the Global Advisors’ Islamic Finance Outlook Report for 2016, no Indonesian Islamic banks were ranked in the top five largest banks based on assets in Southeast Asia...

New Islamic bank to set up shop in West Bank, Gaza

Source: Al Monitor

Only two Islamic banks in Palestine are licensed by the Palestinian Monetary Authority (PMA), which acts as a central bank, in addition to two unlicensed others in the Gaza Strip. In response, some Palestinian businessmen are opening the new Al-Safa Islamic Bank. The first branch is expected to start offering its services by September in Ramallah's Masyoun neighborhood in the West Bank, while another branch is to be opened in the Gaza Strip later on. PMA Governor Azzam Shawa told Al-Monitor, “Two Islamic banks, namely the Arab Islamic Bank and...

Islamic banks in London reject Brexit fear

Source: Pak Observer

Islamic banks and asset managers based in London have played down the impact of the UK vote to leave the European Union, amid wider fears the move could spell an exodus from the world’s financial capital. The Brexit result has caused turmoil in the markets, sending the pound to a 31-year low and wiping trillions of dollars off world equities in the immediate aftermath of the June 23 vote. And, four more companies: Aberdeen Fund Managers, Canada Life, Columbia Threadneedle and Global Henderson suspended withdrawals from property funds amid a rush to the exits...

Dubai Islamic Bank Meets Forecast

Source: Business Recorder

Dubai Islamic Bank (DIB), the United Arab Emirates' largest sharia-compliant lender, posted a 3 percent increase in second-quarter net profit on Wednesday, broadly in line with analysts' forecasts. The bank made 928.9 million dirhams ($252.9 million) in the three months to June 30, it said in a statement. This compares with a profit of 902 million dirhams in the corresponding period of 2015. The average forecast of three analysts polled by Reuters was for DIB to make a quarterly profit of 933 million dirhams...

Morocco Moves forward to Establish First Islamic Bank in 2017

Source: Morocco World News

Representatives of the central bank said it had received seven requests to open Islamic banks and three to open windows selling Islamic finance products, Reuters reported. Two Gulf banks requested to establish fully owned subsidiaries while four others are partnering with local banks. Lhassane Benhalima, the central bank’s head of banking supervision, said the Moroccan bank CIH is partnering with Qatar International Islamic Bank and Morocco’s CDG to establish an Islamic bank subsidiary...

Al Yusr Islamic Banking sweeps gold

Source: Zawya

Al Yusr Islamic Banking Window from Oman Arab Bank (OAB) won the prestigious Gold Award in the Banking category for its bilingual Arabic and English website at the Oman Tech Awards, held in Muscat at the Shangri-La Barr al Jissah Resort and Spa. The award recognizes Al Yusr's role as an innovator in customer experience by always striving to provide the right tools to best serve the banking and financial needs of the people of Oman. Abdul Qader Al Bulushi, General Manager, Al Yusr Islamic Banking said, "Our objective was to utilize technology to reach to our...

Islamic Banking gains currency again

Source: Indian Express

The concept of Islamic Banking has once again found place in the Kerala economy. In the revised State Budget presented on Friday, Finance Minister Thomas Isaac granted Cheraman Financial Services Ltd (CFSL) the Rs 250-crore modernisation of the Kerala State Drugs and Pharmaceuticals (KSDP). To mobilise fund for the project, the share capital base of Cheraman Finance will be widened. Upon completion of the modernisation work, the factory will be leased out to the Industries Department, and the lease amount will be given as returns to shareholders....

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