Islamic Finance
Use of Trade and Lease as Financing Modes in Islamic Banking
Respected scholar, Dr. Muhammad Ayub sahab recently wrote a ‘rejoinder’ on my article ‘Difference between Interest and Trade: Weakening Justifications’. Being a criticism on my viewpoint, it was supposed to mention what I wrote and then, the author could have provided his own analysis. But, apart from one instance, the ‘rejoinder’ did not mention my own words and even when it did on one particular instance; it was a complete misrepresentation of my viewpoint. The author seems to have largely constructed his own arguments and then provided answers to them.
MALAYSIA: Angkasa to Introduce Syariah Financing Cooperative in January
The Angkatan Koperasi Kebangsaan Malaysia Berhad (Angkasa) is confident the Syariah Financing Cooperative (Kopsya) based on the Islamic banking system would be implemented in January, said Angkasa deputy president Datuk Abdul Fattah Abdullah. He said at the moment about 200 credit cooperatives with a total accumulated fund of RM360 million had agreed to join the Kopsya scheme. "We will begin with credit cooperatives before extending it to other cooperatives including school cooperatives and Kopsya is now in the process of appointing its board of directors," he said. He said the establishment of Kopsya was expected to provide better benefits to cooperatives registered under Angkasa especially on credit loan, education loan and other credit facilities.
MALAYSIA: PRUBSN and BSN launches Giro Takaful Hajj
Prudential BSN Takaful Berhad (PruBSN) and Bank Simpanan Nasional (BSN) have together launched Giro Takaful Hajj, a family takaful plan designed to provide protection and savings as well as cater to a Muslim’s spiritual needs, all in one product. This product which complements an individual’s savings for hajj, has been available in BSN since 8th of August 2011. With this product, the partnership between the two companies now has five takaful products available to BSN’s clients. According to Encik Azim Mithani, the Chief Executive Officer of PruBSN this provides a strong foundation for future growth.
French keen on learning from Saudi experience in Islamic banking: Envoy
French academics have shown their keenness to make use of Saudi expertise and experience in Islamic banking and finance, said Saudi Ambassador to Paris, Muhammad bin Ismail Al-Asheikh. The ambassador made this comment while holding a reception in Paris on the occasion of the launch of an academic chair titled "Financial morals and principles: Islamic banking as a model." The chair is established in Sorbonne University as a joint research project of King Abdulaziz University (KAU) in Jeddah and the French university.
MALAYSIA: BSN's Wealth Management Division to Contribute Up To 15 Per Cent to Revenue
Bank Simpanan Nasional (BSN) expects its wealth management division to contribute up to 15 per cent of the bank's revenue next year, driven by new product launches and increasing demand for takaful products. Deputy Chief Executive Winston Emmanuel Jeyaprakash said the expectation was based on the low penetration rate of takaful products compared to the high number of Muslim customers in the bank. "We would like to offer takaful products because almost 80 per cent of our clients are Muslims. I think takaful will be very lucrative revenue for us to tap as an additional income stream," he told reporters at the official launch of the Giro Takaful Hajj here today. Giro Takaful Hajj is a takaful plan, launched in collaboration with Prudential BSN Takaful Bhd (PruBSN), to provide protection and savings for future Hajj and Umrah pilgrims.
Islamic Banking Needs to Develop Capacity to Undertake Cross-border Deals
South-East Asia and the Gulf Cooperation Council (GCC) nations are the two largest Islamic finance hubs but there are not many cross-border transactions between them, said Dubai-based Noor Investment Group chief executive officer, Hussain Al Qemzi. Hussain said if both could not trade among themselves, then they were not doing it right. "If we are to challenge the conventional banks' entrenched position in international financial deals, we must develop the capacity to structure multi-currency and cross-border transactions and to build scale. To do that we need to build deeper relationships between key markets and between banks, so that we are better placed to compete on a global scale," he said.
BAHRAIN: Elaf Bank Wins the WIBC Institutional Excellence Award 2011
Elaf Bank, a wholesale Islamic bank licensed by the Central Bank of Bahrain (“CBB”) with headquarters in Bahrain and a branch office in Malaysia, has been awarded the World Islamic Banking Conference (“WIBC”) Institutional Excellence Award 2011. The prestigious award was presented to Elaf Bank by HE The Governor of the CBB, Mr. Rasheed Al Maraj, at the WIBC Annual Gala Dinner and Awards Ceremony, which was held on 22nd November 2011, at the Gulf Hotel in Bahrain.
UNITED KINGDOM: UK 'to remain top Islamic financial centre'
The UK and London will remain the world's leading international and Islamic financial centres, said British Ambassador Iain Lindsay at a UK roundtable discussion at the WIBC. 'Islamic finance, like every other type of financial activity, benefits from the UK's combination of experience, variety of skills, geographic location, infrastructure, transparency and openness,' he said. 'The UK recognises the tremendous opportunities that Islamic financial services have to offer. The latest figures for Shariah compliant assets in the UK are $19 billion and $1 trillion globally with a potential global growth to $4 trillion.'
Islamic banking
In spite of the economic turmoil in Europe, the economic problems in the US and the unrest in Bahrain, this year's World Islamic Banking Conference (WIBC) proved to be the biggest to date. "In the current economic climate, the attendance at this year's event was just magnificent," said event organiser David McLean. "We broke through the 1,300 delegate numbers and had more sponsors than ever before which is remarkable and is a testament to Bahrain's role as the capital of the Islamic banking industry. "To get speakers and delegates from more than 50 countries was quite an achievement, given the state of the global financial industry, but it is a testament to the fact that Islamic finance is continuing to grow in this climate and shows that people across the globe see Bahrain as remaining the focus for the industry.
MALAYSIA: Halal industry should work with Islamic finance
Despite the Halal industry’s rapid growth, it is missing out on opportunities to tap into Islamic finance, panel members said. “There is a disconnect between the Halal industry and Islamic financing, which is ironic since we’re working within the same religion, but are not talking to each other,” said Thomson Reuters head of Islamic finance (Asia) Rafiza Ghazali at a discussion on “Halal Economy” during the Islamic Financial Intelligence Summit. She said in a study conducted by Reuters on 250 companies involved in Halal production and with a combined market capitalisation of US$132bil, it found that only 50% of them passed the Aofi test, which meant that they are not syariah-complaint. The Aofi test was a screening criteria used by Reuters to determine the syariah compliancy of stocks, she said.