Islamic Finance and banking news

background image

Home

| My Account | News | Articles | Archives | BF Directory | Events | Books | Article Login | Login

Islamic Finance News

Europe

Middle East/Asia

America

Africa

Student Subscription

Corporate Subscription

Individual Subscription

Delegates Offer

Digital Student Subscription

Digital Individual Subscription

Article Subscription

Events

Objective Capital

Global Mining

Investment

Conference

Event date: - 2010-09-28

The 2nd Annual

Islamic Finance Paris

Market Meeting

Event date: - 2010-09-28

Middle East

Investments Summit

2010

Event date: - 2010-10-03

Fund Forum Middle

East 2010

Event date: - 2010-10-03

International Seminar

on Islamic Finance in

India

Event date: - 2010-10-04

More Events

Add

Event

Search

Enter your keyword

submit

Worlds Poorest Nations Look to Islamic Banking to Stimulate Economic

Growth

Senegal, Pakistan and Afghanistan, among the world’s 50 poorest

nations, are turning to Islamic banking to spur economic growth by

encouraging people to take out loans and open savings accounts.

Outstanding domestic bank lending accounted for 3.5 percent of Afghanistan’s

gross domestic product in 2008, 25 percent in Senegal, 27 percent in Nigeria

and 46 percent in Pakistan, according to data compiled by the World Bank.

The rates compare with 224 percent in the U.S. and 115 percent in Malaysia, a

global hub for finance that conforms with Shariah principles.

Developing Islamic nations have shunned banking in part because of the

religion’s ban on interest, limiting access to funds for project financing and

stunting business growth, according to the International Monetary Fund.

Governments should improve regulations, products and institutions that comply

with Shariah law to accelerate the industry’s development, Patrick Imam and

Kangni Kpodar, economists at the IMF, said in a telephone interview from

Washington on Sept. 14.

“Islamic banks provide access to finance to a segment of the population that is

underbanked,” said Imam. Once “they start putting money in these banks you

start a process of financial intermediation, where savings are channeled from

individuals via Islamic banks to investments,” he said.

‘Closer to Religion’

Senegal is reviewing legislation that would allow lenders to set up Islamic units

in a nation where 94 percent of people don’t have savings accounts, Birahim

Seck, chief executive officer of SYM International Finance Corp. in Dakar, said

in a Sept. 14 interview. Pakistan’s central bank is pushing Shariah banks to

boost financing to small- and medium-sized businesses, Saleem Ullah, the

director of Islamic banking, said on Sept. 16.

Afghanistan is planning to issue three banking licenses, the first to offer a full

range of financial services that comply with Muslim tenets, paving the way for

its first sale of Shariah-compliant debt, Aimal Hashoor, a central bank

spokesman in Kabul, said in an interview on Aug. 15.

Global sales of sukuk, which use asset returns instead of interest to pay

investors, fell 24 percent to $10.7 billion so far this year, according to data

compiled by Bloomberg. Issuance will increase in the second half as

international market conditions improve, Standard & Poor’s said in a statement

on July 28.

“In poorer countries, people are generally closer to the religion so it is much

easier to attract them toward anything associated to their belief,” Pervez Said,

chief executive officer of Dawood Islamic Bank Ltd. in Pakistan, said in a

phone interview from Karachi on Sept. 14.

Legal Issues

Afghanistan had a per capita gross national income of $370, compared with

$590 in Bangladesh, $1,040 in Senegal, and $1,140 in Nigeria, according to

World Bank 2009 data published in July. In contrast, the figure was $47,240 in

News by Topics

The tremendous growth

in Islamic banking has

encouraged

banks

globally to move into

this

area

that

has

become more popular

among consume ...

Read More ..

Buy Now

Current Issue

Subscribe

Digital

Archive

Current issue

Sponsor links

Bank Kesharvarzi

Swiss Re - Retakaful

Digital Global Islamic Finance

Global Risk Managment Group

Overseas Trade Finance

Latest Jobs

Mechanical Engineers Needed

Location - Location

Islamic Finance Faculty

Location - Kuwait

Banking & Finance Litigation Associate

Location - London

ISLAMIC BANKING 4-6+, TAX FREE

Location - Doha

Saudi lawyers

Location - Riyadh

Islamic finance; 2+ pqe; Dubai

Location - Dubai

More jobs

New Developments category

Islamic Finance

Islamic banking

Risk Managment

Money Market

Latest News

Sponsor Articles

Buy Current Issue

Subscription

Articles Collection

Books Review

Events

Financial Deals

Membership

Columnists

Article Subscription Login

Login

Page 1 of 3

Islamic Finance and banking news

2010-09-29

http://www.globalislamicfinancemagazine.com/?com=news_list&nid=1071

background image

Follow Us

the U.S. and $7,230 in Malaysia. About 99 percent of Afghanistan’s 33 million

population practice Islam, while 95 percent of people in Senegal are Muslims,

according to the 2009 CIA World Factbook.

Nigeria, which has 75 million Muslims accounting for 50 percent of the total

population, drafted Islamic banking guidelines last year, including the types of

Shariah-compliant products and risk recommendations for banks.

Jaiz International Bank, based in Abuja, Nigeria, has yet to start its Islamic

banking operations after receiving a license from the country’s central bank

this year, Muhammad Mustapha Bintube, the lender’s managing director, said

in an interview on Sept. 18.

“There are still some legal and regulatory issues to be sorted out,” he said.

“There’s a lack of skills and a lack of knowledge” about the industry, he said,

adding that between 50 percent and 60 percent of the population don’t use

banks.

Assets to Increase

The Islamic Financial Services Board, a global standard- setting body, and the

Islamic Development Bank predicted in April that assets held by Islamic

financial institutions may climb to $1.6 trillion by 2012 from about $1 trillion this

year. The IMF and the World Bank are members of the IFSB.

The United Arab Emirates accounts for 22 percent of total Islamic banking

assets, followed by Saudi Arabia, Bahrain and Kuwait, according to a

September report from the IMF.

Sukuk have returned 10.6 percent this year, compared with 24 percent in the

same period in 2009, according to the HSBC/NASDAQ Dubai US Dollar Sukuk

Index. Debt in developing markets gained 12.6 percent, JPMorgan Chase &

Co.’s EMBI Global Diversified Index shows.

The spread between the average yield for Islamic bonds and the London

interbank offered rate has narrowed 92 basis points this year to 375, according

to the HSBC/NASDAQ Index. The gauge climbed five basis points yesterday.

A basis point is 0.01 percentage point.

Reward and Failure

Malaysia’s 3.928 percent dollar-denominated Islamic bonds due June 2015

have returned 4.2 percent this quarter, compared with 6.4 percent for the

Dubai Department of Finance’s 6.396 percent sukuk, according to prices from

Royal Bank of Scotland Group Plc.

The yield on Malaysia’s note dropped two basis points to 2.7 percent today.

The rate on the Dubai bond climbed six basis points to 6.42 percent. The extra

yield investors demand to hold the Dubai November 2014 securities rather

than Malaysia’s widened seven basis points to 372. The gap has narrowed 45

basis points, or 0.45 percentage point, this quarter.

Senegal would lure funds from the Middle East with a system to facilitate

Islamic financing, said Seck at SYM International. A lack of regulation and

sufficient knowledge are hampering growth, said Seck, whose company helps

bring investment from members of the Organization of the Islamic Conference

into West Africa.

“You have to have a strong system in place and most West African countries

do not have regulation that can allow Islamic banking to operate,” he said.

The concept of risk-sharing in Shariah banking that prohibits interest payments

would be more useful in Muslim countries because their economies are less

diversified, the IMF economists said.

“In the Islamic banking system, both the bank and entrepreneur share the

reward and failure, and in many developing countries such risk sharing might

allow entrepreneurs to undertake projects that they couldn’t otherwise

contemplate,” said Kpodar at the IMF.

Share

|

News

Kuwait Finance House Supports Islamic Finance Busi ...

2010-09-29

Kuwait Finance House Bahrain is set to support the Islamic

Business Models in the Financial S ...

Asia's Sukuk Sales Lag Behind Persian Gulf ...

2010-09-29

It has been reported that Asian Sukuk issuers have planned to

sell $2.1 billion of Islamic de ...

Tamweel Begins Repossession of Default Properties ...

2010-09-29

Click to launch the full edition in a new window

Online Publishing from YUDU

Latest Books

Introduction to Islamic Banking and

Finance

Author/Publisher: - Spiramus Press

Islamic Money and Banking:

Integrating Money in Capital Theory

Author/Publisher: - Wiley Finance

Handbook of Islamic Banking

Author/Publisher: - Edward Elgar

Publishing Ltd.

A Guide to Islamic Finance

Author/Publisher: - Munawar Iqbal

Understanding Islamic Finance

Author/Publisher: - Muhammad Ayub

Buy Now

More Books

QUOTE of the week

''

A key remining industry issue is the

need to understand that the dogma of
Islamic finance is not exclusively for
Muslim; perhaps the market is not taking
initiative enough in the education of
people regarding the universality of

Islamic finance

''

Editor in Chief

Page 2 of 3

Islamic Finance and banking news

2010-09-29

http://www.globalislamicfinancemagazine.com/?com=news_list&nid=1071

background image

Share

|

Company Recomendation of the week

Professional Accountants Group is a UK provider of

accounting and business services for small and medium

companies. Our aim is to assist and support our

customers, whether they are just making first steps in

the business environment or are well established

entities in their environment.

The Chief Executive Officer (CEO) of Tamweel has revealed

that Dubai-based mortgage lender Ta ...

Dubai Islamic Bank Becomes Major Shareholder in

Ta ...

2010-09-28

The Government of Dubai on Sunday cleared the acquisition of

a controlling stake in Islamic mortgage company ...

HSBC Beaten to Poll Position by CIMB as Top Underw ...

2010-09-28

CIMB Group Holdings Bhd., Malaysia’s second-biggest lender,

overtook HSBC Holdings Plc to become the to ...

Contact us Privacy Policy Terms and condition About us Adverting and Sponsorship

Contribiutors Media Patronage Digital Version Global Newsstand Sales Article Collection

© 2009-2010 Business Media Group

Page 3 of 3

Islamic Finance and banking news

2010-09-29

http://www.globalislamicfinancemagazine.com/?com=news_list&nid=1071


Wyszukiwarka

Podobne podstrony:
Financial Accounting & Banking Interview Questions and Answers
Finance and?nking
Islamic Finance Outlook 2010
Dictionary of financial and business terms EX6PTRCVT5DZZ62YSENPREOQSQZ5R6MM5MK4HII
IFSL Islamic Finance 2010
ISlamic financial institution
Islamic Finance 2008(1)
Finance and trade memoire
Finance and?nking
The Islamic View and the Christian View of
MONEY AND BANKING NBP – THE CENTRAL BANK IN POLAND
good and bad news
money and banking
Business and Economy Finance and Investment
islamic world and latin west 13501500
Finance and trade memoire
The Islamic world and the Latin

więcej podobnych podstron