February 2010 Issue

AmIslamic Bank Expects 30 Per Cent Growth In Assets

Bernama, Malaysia | January 27, 2010

Jordan to Host Key Islamic Finance Forum

Trade Arabia, Manama, Bahrain | January 22, 2010

Jordan will host a major Islamic finance conference in March. It will attract influential players in the field of Islamic financing and others interested in the industry. The First Islamic Finance & Investment Forum for the Middle East (IFIF) 2010 will be held on March 2 and 3 at the King Hussein Bin Talal Convention Center (KHBTCC) in the Dead Sea. The forum is being organised by KHBTCC, Lawrence & Husseini Consult, B-design and Marketing and Strategy Business Development in cooperation with the Ministry of Finance and the Central Bank of Jordan. This forum is supported by the International Cooperation, International Islamic Financial Market, Islamic International Foundation for Economics and Finance, Accounting and Auditing Organization for Islamic Financial Institution, Bahrain Association of Banks (BAB) and the Central Bank of Jordan. In parallel with the conference, an exhibition of Islamic finance products and services will take place. ......

Islamic Bank Ready to Take Bigger Steps

Bangkok Post, Thailand | January 25, 2010

On the whole, 2009 stood out as a good year for the Islamic Bank of Thailand, as it earned a modest annual profit of 300 million baht, its first since its founding in 2003.‘‘We most definitely will continue with our lending to the southern border provinces. In March, the bank, which counts the Finance Ministry as its largest shareholder, rebranded to be known as "I Bank", with the goal of expanding abroad, upgrading operations to best international practices and expanding services to serve customers of all nationalities and religions. The changes are timely, as competition is expected to rise in the specialised market for Islamic finance in Thailand over the next few years, particularly after last year's acquisition of Bank Thai by Malaysia's CIMB. The new CIMB Thai has already announced plans to open an Islamic window through its 125 branches nationwide, directly challenging I Bank as the sole player in the retail market. .....

Thomson Reuters Launches System for Islamic Banking

Gulf Daily News, Manama, Bahrain | January 11, 2010

Thomson Reuters have launched a risk management system specifically tailored for Islamic banking. Kondor+ Suite for Islamic Banking is a real time trade and risk management solution, which will provide full front-to-back and cross-asset coverage for Islamic banks as well as Islamic windows in conventional banks. Recent events have shown that whilst Islamic banks have avoided the complex instruments that were central of the credit crisis, they have still been susceptible to the downturn. Non-performing loans and investment impairments in the region have mounted in the last year, resulting in a call from the market for systems that foster transparency. The new Kondor+ Suite for Islamic Banking is designed in accordance with Sharia rules under which financing and investment techniques are based on profits from trade rather than the paying and receiving of interest.....

Indian Government May Allow Islamic Banking, Eyes $1tn Funds

Times of India, India | January 19, 2010

Aggressively pitching for $1 trillion worth of Sharia-compliant funds from the Gulf countries for investments in its infrastructure development, the UPA government has drafted a report on Islamic banking even as RBI and the finance ministry are jointly working on necessary legislative changes to implement the same. A committee headed by the Cabinet Secretary and comprising secretaries from other ministries, including finance, submitted a report to the government recently on the prospects of Islamic banking in the country and on drawing investments from abroad, Rajya Sabha deputy chairperson K Rahman Khan said on Wednesday. Khan is behind an Indo-Arab Economic Summit to be organised in the Capital from February 3-4 where authorities from the Arab world will be present. The summit will be presided over by foreign minister S M Krishna. "The emphasis will be to attract investments from these countries through opening up channels like venture capital and mutual fund options which are largely Sharia-compliant," Khan added.....

Indonesia Has Four New Sharia Banks to Come On Line

Individual, Jakarta, Indonesia | January 27, 2010

Competition in the sharia banking market will be sharper with four new Islamic banks to come on stream this year in Indonesia. Bank Indonesia said BCA Syariah, BNI Syariah, Victoai Syariah and Maybank Syariah will start operation this year. The country already has xix sharia banks in operation including Bank Muamalat, Bank Syariah Mandiri, Bank Syaruah Bukopin, BRI Syariah and Bank Jabar Syariah. .........

First Gulf Bank Reports 10% Increase in 2009

Gulf News, Middle East | January 27, 2010

The Board of Directors of First Gulf Bank (FGB) announced on Wednesday its full year 2009 financial results with Net Profit reaching a new record at Dh3, 310 million, representing a 10 per cent increase over the bank's 2008 results. Abdul Hamid Saeed, Board Member and Managing Director commented on the results, "Once again, FGB delivers an outstanding financial performance in 2009.At a time where the world is challenged by the global economic crisis, FGB emerges stronger and delivers record results. This reaffirms the bank's leading position as a very solid financial institution built on strong fundamentals." "FGB continues to deliver strong results year after year. This consistent success is clearly attributed to the vision and sound business strategy from the Board of Directors. This vision is implemented by the highly qualified and experienced management team and the fully dedicated staff," said Andre Sayegh, Chief Executive Officer........

Islamic Banking Safe Play

Telegraph, India | January 15 , 2010

The Centre appears wary of introducing an interest-free Islamic banking system in the country at a time some Congress politicians and Muslim financiers are making a pitch for it. The Shariah prohibits collection or payment of interest, so many Muslims now avoid opening bank accounts. Advocates of Islamic banking say that introducing Shariah-compliant banking-- where banks neither pay interest on deposits nor charge interest on loans -- would benefit 15 crore Indian Muslims and also the economy by helping unlock the huge sums un-invested by the community. A senior minister and key decision-maker, however, recently told a delegation of Islamic banking advocates that it would be better to use a neutral term because the label “Islamic” identified the system with a particular faith and could be challenged legally....

World's Sukuk Markets are good medium-term growth prospects

Business Intelligence, Middle East | January 18, 2010

INTERNATIONAL. Medium-term growth prospects for the world's sukuk market are good, said Standard & Poor's Ratings Services in a report published today. "We foresee stable growth in issuance of these securities in 2010, after a recovery last year to issuance of US$23.3 billion," said Standard & Poor's credit analyst Mohamed Damak in the report, "The Sukuk Market Is Likely To Show Steady Growth In 2010."Notable developments in 2009 were:....................

Indonesian Islamic Banking Outlook to 2013

TMC News, USA | January 19, 2010

With the global financial crisis raising doubts over the world's conventional financial system, the banking industry in Indonesia stands to benefit from the global downturn and expects to continue rapid growth in the coming years. The financial crisis is having no negative impact on the development of Islamic banking in the country. So far, Islamic banks have not showed any weakening of their performance and we expect both assets and lending would grow at a CAGR of over 50% between 2009 and 2013. This optimistic view is based on its very nature (avoid involvement of interest rates), extremely low penetration and a healthy growth in lending over the past two years.........

Islamic bond issuance rebounds in 2010

Financial News, UK | January 22, 2010

Issuance of Islamic bonds, called sukuks, has hit the highest volume for a decade so far this year. Deals worth more than $1bn (€72m) have come to market in January, but concerns remain over defaults in the largely untested market......

Islamic Banking Gets Foreign Investments

Borneopost, Malaysia | January 25, 2010

Deputy Finance Minister, Senator Datuk Dr Awang Adek Hussin, yesterday said up to 60-70 per cent of Islamic banking conducted in the country received investments from international parties. He said that the high participation proved confidence in the Islamic banking system practised in the country and it had global recognition. “After countries of the Middle East, Malaysia emerges as the leading nation that practices the Islamic banking system,” he told reporters after officiating the opening of the first Bank Simpanan Nasional (BSN) branch in Taman Bendara, Pengkalan Chepa, near here yesterday.......

EIB Introduces the First Comprehensive Life Takaful

Zawya, UAE | January 17, 2010

In line with its commitment to be at the forefront of innovation & service excellence, EIB, one of the leading financial institutions in the region, in alliance with AMAN Insurance Co., has introduced Al Hesn Takaful, a new bank assurance cover for a contribution of as little as AED 1 per day !Al Hesn Takaful consists of 4 different plans with monthly contributions ranging from AED 30 to AED 265 to suit the various requirements of the diverse customer base. Plans cover natural death, as well as death by accident, permanent total or partial disablement due to an accident, death due to an accident in common carriers and a cash benefit on hospitalization in addition to a lump sum benefit on hospitalization exclusively for Emirates Islamic Bank's customers. Commenting on the launch, Mr. Faisal Aqil General Manager Retail Banking Emirates Islamic Bank said: "The well being and peace of mind of our customers are always on the bank's product development radar. We at Emirates Islamic Bank are dedicated to providing quality tailor-made solutions that meet the diverse requirements of our customers. Most importantly, this is yet another meaningful contribution by EIB in context of our social responsibility as an organization"....

Bank Islam Eyes Acquisitions in Southeast Asia

Yahoo News, Malaysia| January 18, 2010

Bank Islam Malaysia Bhd is looking for merger and acquisition opportunities in the Southeast Asian region, according to managing director, Datuk Zukri Samat. "We are looking at any opportunity for mergers and acquisitions or taking a strategic stake in banks around the region," he told reporters, after the official opening of Bank Islam's 100th branch at Bukit Damansara, here today. The opening was officiated by Second Finance Minister, Datuk Seri Ahmad Husni Hanadzlah. Zukri said Indonesia is one of the markets Bank Islam is eyeing, adding that with a population of 250 million, it offers enormous opportunities to grow Islamic banking. He said the merger and acquisition exercise is a component under Bank Islam's sustainable growth plan. The three-year plan is aimed at increasing organic growth and strengthening the bank's position on the domestic front....

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