Islamic Banks Face Outdated Property Rules

Source: Reuters

  • Regulators overseeing Islamic banking must revise guidance on real estate exposures to align with the post-financial crisis capital rules of Basel III, a global industry body said on Sunday. The Bahrain-based General Council for Islamic Banks and Financial Institutions (CIBAFI) said treatment of real estate across Islamic finance jurisdictions still reflected Basel II or pre-reform Basel III rules. But a revised version of Basel III, finalised in December 2017, introduced...

Advocate Islamic Finance to Fund UN

Source: Mondo Vision

  • The Securities Commission Malaysia (SC) together with the United Nations Development Programme (UNDP) and the Islamic Development Bank (IsDB) last Thursday (27 September 2018) hosted a forum titled “Achieving the SDGs: Unleashing the Potential of Islamic Finance” on the sidelines of the 73rd UN General Assembly. The Prime Minister of Malaysia YAB Tun Dr. Mahathir Mohamad officiated the event which advocated the use of Islamic finance to close funding gaps in achieving the United Nation’s Sustainable...

Govt Committed to Promote Islamic Banking Sector

Source: Finance Observer

  • A delegation of Chief Executive Officers of Islamic Banking Institutions called on Federal Minister for Finance, Revenue and Economic Affairs, Asad Umar here at the Ministry of Finance. Secretary Ministry of Finance Mr. Arif Ahmed Khan was also present on the occasion.
    During the meeting, President Meezan Bank Irfan Siddique gave a detailed presentation on Islamic Banking sector in Pakistan. He said that there was a great demand for Islamic banking as a large segment of population...

Scholars Debate, Digital Innovations Enter Islamic Finance

Source: Gulf Times

  • On the surface, digital innovations in finance such as cryptocurrencies or digital exchanges seem to be on collision course with Shariah law, which emphasises real economic activity based on physical assets and does not allow monetary speculation. That said, the question remains whether processing of digital assets fall under the speculative category simply because bits and bytes are no physical assets. Ziyaad Mahomed, associate dean at the International Center for Education in Islamic Finance in Kuala...

Islamic Finance: Is Cryptocurrency Halal?

Source: Edge Markets

  • Dr Ziyaad Mahomed, associate dean of executive education and e-learning at the International Centre for Education in Islamic Finance (INCEIF), observes that Islamic scholars around the world have mixed views on the use of digital currencies. They range from being permissible to something that requires caution to being prohibited outright. To give context to the debate among scholars, Ziyaad says it is important for investors to understand the basic concept. “Cryptocurrencies are recognised...

Africa: Islamic Finance is Gaining a Foothold Across

Source: Quartz Africa

  • Since 2014, $2.3 billion in sukuk, or Sharia-compliant bonds, have been issued in the continent, notes a briefing from ratings and financial agency Moody’s. There has also been an increase in the number of licensed Islamic financial institutions, rising to over 80 in the last five years. As more governments introduce plans to mainstream Islamic financing, conventional banks in Nigeria, Togo, Senegal, and beyond are also setting up departments...

Banks Want 'Costly' Islamic Banking Adjusted

Source: The Observer

  • Banks have petitioned the central bank to review key regulations in Islamic banking to make it less costly for the banks. Patrick Mweheire, the chairman of Uganda Bankers’ Association (UBA) and chief executive for Stanbic bank said the current regulation requires that a commercial bank that applies to offer Islamic banking must have its own sharia panel comprising a nine muftis. Mweheire, who was speaking at UBA’s offices in Muyenga on Wednesday, said this is costly for the banks...

Putting the Impact Back into Islamic Finance

Source: Euro Money

  • “When we talk about Islamic finance, one of the problems we have is that we are always talking about the three ‘S’s – sukuk, Shariah standards and scholarly debate – at conferences,” says Arsalaan ‘Oz’ Ahmed, chief executive of HSBC Amanah Malaysia in Kuala Lumpur. “We’re not talking enough about the important S, which is social impact: the role Islamic finance has in supporting society Malaysia is by some distance the world’s most sophisticated market for Islamic finance and has the institution in the strongest position to do something...

Gov't Committed to Promote Islamic Banking

Source: Duniya News

  • Caretaker Minister for Finance Dr Shamshad Akhtar Modnay said the government was committed to promote both industry as well as the regulators of Islamic Banking in the country. “When I was governor of State Bank of Pakistan (SBP) few years back, we were promoting the Islamic finance industry in very aggressive manner, and the subsequent governments were also engaged in promoting the industry,” the minister said while responding to a resolution moved by Senator Shibli Faraz in the Senate...

Islamic Finance on the Advance in Europe

Source: Gulf Times

  • Latest developments show that Europe is increasingly embracing Islamic finance to an extent that the industry is gradually becoming more influential within the continent’s banking sector. Gulf Times reported last week about the growing potential Islamic finance is gaining on the Balkans, namely in Bosnia and Herzegovina, and this time it is the foray of Al Baraka Banking Group, which through its Turkish subsidiary Al Baraka Turk, launched a digital-only Islamic bank in Germany...

Blockchain Service Launched for Islamic Finance

Source: Coms MEA

  • Blockchain expert ArabianChain Technology, and ‘innovation firm' Curiositas will offer blockchain-based smart contracts and legal automation for Islamic finance products. The ‘Wethaq' platform is targeting Islamic capital markets, acting as a platform-as-a-service for financial institutions, fundraisers and investors to use in the pre-sale, issuance, management and secondary trading of sukuk products. Clients will be able to use Wethaq's comprehensive....

Islamic Finance and Impact Investing

Source: UNDP

  • The Sustainable Development Goals (SDGs) offer new investment opportunities for the private sector, which will be vital to help address the SDG financing gap - roughly US$2.5 trillion. The need to harness innovative and untapped financing sources is paramount and is at the heart of this year’s United Nations General Assembly, which kicked off with the Secretary-General’s High-level Meeting on Financing the 2030 Agenda for Sustainable Development The good news is that global awareness about the SDGs is increasing, and private sector actors are taking on key...

Plea on Islamic Banking

Source: GK News

  • The High Court has granted four more weeks to the Union Finance Ministry as well as Reserve Bank of India to respond to a Public Interest Litigation (PIL) seeking the introduction of Islamic Banking in Jammu and Kashmir. A division bench of acting Chief Justice Alok Aradhe and Justice Dhiraj Singh Thakur granted more time to the Union Finance Ministry and Reserve Bank of India for the reply after the assistant solicitor general of India, Tahir Shamsi, made a submission in this regard...

Isra Launches Improved Islamic Finance Portal

Source: Strait Times

  • Isra executive director Professor Dr Mohamad Akram Laldin said I-FIKR was a one-stop portal that provided authentic resources and materials related to Islamic finance. He said the portal, which was first launched by former Bank Negara Malaysia governor Tan Sri Dr Zeti Akhtar Aziz in 2012, was mainly intended to host Isra’s publications, but it was revamped recently to meet growing demand for reference material in Islamic finance. “In line with the demands and technological digitisation, we decided to revamp the portal to make it more informative, interactive and the most efficient...

Creating Footsteps in Kuwait’s Islamic Banking

Source: CPI Financial

  • This achievement is made possible by the unwavering support of our customers. The key to our success is in delivering superior customer experience by continuously innovating our products, service delivery and offerings. Being customer focused means having a deep understanding of customer needs as well as the relevant business and operating environment....

Al Baraka Launches Islamic Digital Bank

Source: Reuters

  • The digital banking service would be the main strategy for penetrating the European market, including an estimated 20 million Muslims living in the continent, said Albaraka Turk General Manager Meliksah Utku. “Our first stop is Germany, our aim is to provide these services to the Muslim communities around Europe.” The digital bank will initially offer basics such as bank account management, online payments and money transfers, with plans to include a wider range of Islamic banking services at a later stage....

Matrix Concepts to Develop an Islamic Finance

Source: Strait Times

  • Matrix signed a joint venture agreement with the consortium comprising PT Bangun Kosambi Sukses (BKS) and PT Nikko Sekuritas Indonesia (NSI) to undertake the development in Pantai Indah Kapuk 2 Sedayu Indo City. The two parties formed a newly-incorporated joint venture company, PT Fin Centerindo Satu, in which BKS will hold 40 per cent equity, while Matrix Concepts and NSI would hold a 30 per cent stake each. Matrix chairman Datuk Mohamad Haslah Mohamad Amin said the joint venture agreement not only marked its initial...

House Islamic Banking Bill Clears Committee

Source: Business World

  • A BILL authorizing the Bangko Sentral ng Pilipinas (BSP) to regulate Islamic Banks cleared two House committees, putting the country on track to harmonize rules for the banking segment with oher countries in the region. “Islamic banks will be regulated in the same way as the other banks under the jurisdiction of the BSP, but the BSP will promulgate rules specific to how Islamic banking and finance practices shall be conducted,” newly installed Banks and Financial Intermediaries Committee chair Henry C. Ong of the second district of Leyte said in a statement Friday...

Sukuk: Experts make case for Islamic finance

Source: Daily Trust

  • An Islamic finance expert from South Carolina, United States of America, Professor Monzer Khaf has urged the federal government of Nigeria to adopt sukuk financial system to stimulate rapid infrastructural development across the country. He gave the charge in Kano in a presentation at a public lecture organized by the Institute of Islamic Banking and Finance He said the existing bond system is prune to corruption and therefore not amenable to meeting the current infrastructural development needs of the country...

Blockchain Holds Key to Future of Islamic Finance

Source: Zawya

  • It is widely accepted that if Islamic finance is to continue to grow, the adoption of the latest financial technology, or fintech, will be necessary if it is to keep pace with rapid developments in conventional banking. And the blockchain revolution that has made possible cryptocurrencies such as bitcoin and ethereum provides the perfect technology for Islamic finance to move into the future. Fintech has been rapidly overhauling the way conventional finance works, but according to management consultancy Accenture only 1 percent of...

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