Islamic Banking and Finance News | September 2018

Source: Reuters

• This would allow the exchange, part of the OneGram Group of companies, to host trades of digital assets as well as stocks and commodities. Malta’s Bianchi Holdings Limited would be an equity partner in the exchange, Mohammed said. Cryptocurrency firms are increasingly teaming up with traditional exchanges to attract more business, but Huulk is also trying to tap into religiously-sensitive Muslim investors....

Source: PAK Observer

• THE Asian Development Bank (ADG) in its latest evaluation of Islamic finance in Asia, entitled “An overview Islamic Banking and Finance in Asia” and issued last month, came to the conclusion that the outlook for the industry was generally positive, although the market keeps struggling with liquidity issues particularly in the sukuk segment, as well as regulatory challenges. Looking back, Islamic banking and finance have experienced...

Source: Gulf Times

• Shariah governance and regulations in Islamic finance remain a diverse topic despite countless initiatives to set a common international framework of rules to standardise or at least harmonise governance for all jurisdictions where Islamic finance plays a major role. The sector is growing fast and on the way to become an important pillar of the global financial industry and, as such, needs cross-border regulations to allow banking...

Source: Business Daily

• Islamic banks in Kenya are hugely expected to conform to regulations as stipulated under Central Bank Prudential Guidelines, 2013. Despite its wide application in the banking spectrum; be it conventional or Islamic banking, unique challenges and practices by Islamic banks justify the need to review the prudential guidelines or develop a set that will focus on unique aspects of Islamic banking operations, financing practices and risk management...

Source: Star Online

• The Global Islamic Finance Forum (GIFF), which will be held on Oct 3-4 here, will focus on the theme “Beyond Profit” as the participants push ahead with value-based intermediation (VBI). The forum will bring together Islamic finance leaders and sustainability experts to advance VBI to build a more sustainable and inclusive global financial ecosystem. Association of Islamic Banking and Financial Institutions Malaysia...

Source: Reuters

• Assets and revenues at Qatar’s Islamic banks have grown over the past year but an increase in problem loans and a drop in foreign currency lending underscore the impact of a diplomatic rift in the region. Qatar has been under a diplomatic and commercial boycott since June last year, when Saudi Arabia, the United Arab Emirates, Bahrain and Egypt cut diplomatic and transport ties with the world’s top exporter of liquefied natural gas...

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...

Source: Pak Observer

• CRYPTOCURRENCIES also known as virtual or digital currencies digitally represent a value that can be digitally traded. They function as a medium of exchange, a unit of account and/ or a store of value, but does not have legal tender status in any jurisdiction. It is not issued or guaranteed by any government, and functions only by agreement within the limited community of users. Cryptocurrencies are different from fiat currency...

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...

Source: Malta Winds

• A new digital exchange aims to attract listings from sharia compliant financial technology startups, its chief executive said on Monday, part of a growing number of firms looking to modernise Islamic finance. The exchange, known as Huulk, has applied for a digital exchange license in Malta and hopes to partner with several European exchanges in the coming weeks, Huulk chief executive Ibrahim Mohammed said....

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....

Source: Lexology

• Developed for Community Finance Ireland (CFI), An Irish charity dedicated to providing loans to community groups which has extended an excess of EUR90 million (US$105.41 million) to over 500 organizations, has added a Shariah compliant financing facility to its mix of products, effectively introducing the Republic’s first generally available Islamic financing instrument. Structured as a Murabahah-based financing product to fund the acquisition...

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...

Source: CCN News

• A new digital exchange aims to attract listings from sharia-compliant financial technology startups, its chief executive said, part of a growing number of firms looking to modernize Islamic finance with cryptocurrency and blockchain at the heart of proceedings. The exchange, known as Huulk, has applied for a digital exchange license in Malta and hopes to partner with several European exchanges in the coming weeks...

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....

Source: Zawya

• Minhaj Advisory, a Dubai-based Co, the best training institute for the year 2017, praised the newly-pioneering step taken by the Higher Sharia Authority (HSA) at Central Bank of the UAE to enforce the Internal Sharia Control Committees (ISCC) of the Financial Institutions in the United Arab Emirates to apply the Shari’ah Standards issued by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) as of the first of next September onwards....

Source: Arabian Business

• Shareholders also approved the issuance of a $750 million sukuk and the repayment of its $1 billion sukuk issued in 2012. The proposals were passed by the requisite majority at the recent general assembly for shareholders, a statement said, adding that the capital plan has been developed to support the bank’s continued growth Khamis Buharoon, ADIB vice chairman and acting CEO, said: “In voting in favour of ADIB’s proposed ...

Source: Zawya

• Qatar Islamic Bank (QIB), Qatar’s leading Islamic Bank, has announced the results for the six months’ period ended 30 June 2018. Net Profit attributable to the Shareholders of the Bank amounted to QAR 1,325.3 Million for the six months’ period ended June 2018 representing a growth of 13.8% for the same period in 2017. Total Assets of the Bank has increased by 1.4% compared to December 2017 and now stands at QAR 152.5 billion. Financing activities have now reached QAR 100.3 billion...

Source: Verdict UK

• Islamic financial institutions work on a philosophy of prohibiting transactions considered immoral and promoting greater social justice by sharing risk and reward. The customer and the Islamic bank share the risk of any investment on agreed terms, and divide any profits between them. Islamic finance does not allow creating new financial risks in order to gain profit; it is about protecting society from trickery, fraud and social tensions...

Source: Zawya

• China's ambitious plan to recreate its ancient land and maritime silk roads for the modern era has created an unprecedented opportunity for Islamic finance to build on its already stellar growth. The Belt & Road Initiative – originally announced by Chinese President Xi Jinping in 2013 – is a trillion dollar project to build an interconnected system of roads, railways, bridges, ports, oil and gas facilities, power supply networks and other...