IslamicFinance.de mission is to support the Islamic finance, banking and takaful industry with news abstracts, opinions, a free encyclopedia, a Twitter page and networking.
Gassner's picture

Running to fundraise for UNICEF !

Dear friends,

After participating in the fundraising challenge for UNICEF by Cycling in the Swiss Alps, Crans-Montana, this year I changed the discipline - I do my FIRST ever participation in a running event!

Would you mind to donate - even for a first time - to UNICEF to make my feet lighter running for the cause?

English:
https://action.unicef.ch/en/vous-aidez-ainsi/collecte-de-dons/harmony-ge...

Francais:
https://action.unicef.ch/fr/vous-aidez-ainsi/collecte-de-dons/harmony-ge...

Many thanks also on behalf of the kids!

Best regards,

Michael Gassner

Ethis Group Comments on Receipt of Islamic Equity #Crowdfunding License in #Malaysia

The Securities Commission Malaysia revealed updated regulations as well as the approval of 8 new "Regulated Market Operators" serving the investment crowdfunding market. Best known for its impact investing in Indonesia, Ethis Ventures launched last year its Global Sadaqah platform and expects to launch its new Ethis Equity platform in Malaysia in Q1 2020. Ethis Group Chief Investment Advisor Maritz Mansor said they are very excited to have this chance to open up a new asset class to all levels and types of investors. Umar Munshi, Managing Director of Ethis Ventures, said SMEs and startups in Malaysia had few avenues for raising funds. He added that the Shariah-compliant alternative was missing and Ethis Equity aims to fill the gap. In Ethis Equity the minimum investment will be low which means that ordinary people can invest alongside professional investors.

Najib's SRC trial: Interesting use of Islamic banking facilities, inter-posed charitable trusts to break-up cash flows into discrete unconnected packages -evidence can prove problematic for ANZ's Shayne Elliot

Two diagrams published by the Malay Mail illustrate the cash flows relied on by the prosecution to prove the charges against Najib Razak. The diagrams reveal the use of Islamic banking facilities and inter-posed charitable trusts to break-up what can appear to be simple linear flows into discrete seemingly independent packages. These arrangements create problems for many, but especially the ANZ Banking Group whose management oversaw these transactions. ANZ CEO Shayne Elliot continues to distance himself from the problem, claiming that he was not a member of the AMBank board of directors when these transactions were executed, but in fact he was.

SAMA fines 16 financial institutions for violating principles of responsible finance

The Saudi Arabian Monetary Authority (SAMA) has fined 16 financial institutions for violating principles of responsible finance and has instructed them to correct the violations. SAMA stated that the fines were imposed in order to implement principles of justice and transparency without providing details of the fines. The central bank fined some of the Kingdom’s major financial institutions such as Al-Rajhi Bank, Al-Ahli Bank, Saudi Fransi Bank as well as Al-Riyad Bank, Al-Jazira Bank and Dubai-based Emirates NBD Bank. SAMA said that the fines were imposed to ensure fairness and competitiveness of financiers.

At fintech meet, Guan Eng says only Pakatan provides the tolerance needed for innovation to thrive

Malaysia's Finance Minister Lim Guan Eng said the country finally gained the tolerance element needed for digital innovation when Pakatan Harapan (PH) became the federal government. In his speech at the Securities Commission Fintech Roundtable 2019 the minister also cited a 2018 World Bank report that described Malaysia as having produced some of Southeast Asia’s most successful digital startups. He added that the government had also committed RM50 million towards a co-investment fund for ECF and P2P investments. ECF and P2P are two relatively recent developments in Malaysia that have opened up additional avenues of funding for microbusinesses and startups that may not yet qualify for traditional loans from commercial banks.

Alliance Islamic Bank launches social #crowdfunding platform

Alliance Islamic Bank launched its first social crowdfunding platform to create greater socioeconomic impact for the financially disadvantaged. The new platform is named SocioBiz and targets individuals seeking to raise funds to start or expand a business or learn a new life skill to earn a living. Alliance Islamic Bank had signed a memorandum of collaboration with Islamic fintech venture builder, Ethis Ventures Malaysia, and beneficiary partners, Yayasan Kebajikan Negara, Yayasan Noor al-Syakur and Pertubuhan Kebajikan Islam Malaysia. SocioBiz targets to identify and promote at least two recipients each month on the platform. So far SocioBiz has rolled out six campaigns and raised over RM23,000 through its platform.

Turkish banks and investors disagree on bad loan talks

Turkish lenders disagreed on almost everything with potential investors when they met for the first round of talks about unloading a pile of bad loans. Investors demanded a 30% discount on the face value of the loans and an ownership stake, but the Turkish banks refused to write-off the loans and wanted to restructure them instead. While the government plans to carve out non-performing energy and real-estate loans, attendees disagreed so that some of the participants questioned whether there would even be more talks. Bank capital ratios are being squeezed after companies requested about $28 billion of debt-restructurings after a 28% plunge in the lira against the dollar last year.

UNHCR unveils Refugee #Zakat Fund

The United Nations Refugee Agency has launched a new global structure that transforms UNHCR’s existing Zakat programme into a global fund. UNHCR unveiled its 'UNHCR Zakat Program: 2019 Launch Report', which shows that global Zakat giving stands at $76 billion worldwide, and could potentially reach an amount as high as $356 billion. According to Houssam Chahine, UNHCR’s Head of Private Sector Partnerships, it was inevitable for the Zakat program to evolve into a structure that better appeals to the global Islamic finance industry. The Fund allows UNHCR to be even more transparent. The decision to restructure the Zakat program into the global Refugee Zakat Fund is due to the high donor turnout UNHCR has witnessed in the past years.

Goldman Sachs brings forward claim linked to Saudi debt saga

Goldman Sachs has bought forward a claim against Bahrain’s TIBC whose default 10 years ago triggered the biggest financial crisis in Saudi Arabia. The Bahraini lender raised money in international markets, transferring the funds to now defaulted Saudi conglomerate Ahmad Hamad Algosaibi and Brothers (AHAB). After TIBC defaulted on a foreign exchange deal, AHAB collapsed along with another Saudi conglomerate Saad Group, leaving an estimated $22 billion in unpaid debts. TIBC, administered by the Central Bank of Bahrain, has a claim of around $3 billion against AHAB, while more than 60 banks that have lent money to TIBC remain unpaid.

Malaysia leads global sukuk issuance

Malaysia continued to maintain the leadership as the largest issuer of sukuk globally with a total of US$13.9 billion in the first three months of 2019. This means a market share of 35.2% from the overall issuance of US$39.5 billion during the period. This also represented an increase of 54.4% compared with US$9 billion that Malaysia issued in the first quarter of 2018.

The Hajdari Group Unveils Newly Pioneered Sharia-Compliant Investment Strategies Option: 'InvestHalal' Wealth Management for American Muslim Investors

The Hajdari Group recently announced the creation of its newest, faith-based financial planning platform: InvestHalal. InvestHalal utilizes a strict code-of-ethics and series of standards established by prestigious global authorities like the Fiqh Council of North America (FCNA), and the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI). Access to faith-based investment strategies has generally been unavailable in the United States to Islamic investors. President of the Hajdari Group, Zaim Hajdari said the Hajdari Group has finally remedied this oversight. InvestHalal offers asset allocation and investment diversification options, a wide variety of investment alternatives and services structured to individual needs: retirement, education, tax and estate planning, as well as other Sharia-compliant wealth allocation.

Abu Dhabi bank delays instalments on personal financing in Ramadan

Abu Dhabi Islamic Bank (ADIB) revealed it would postpone a monthly instalment for its personal finance customers at no extra charge during the holy month of Ramadan. ADIB annually offers flexible payment to customers during Ramadan to meet their individual needs. Philip King, global head of Retail at ADIB, noted that customers eligible for the Ramadan payment postponement initiative would be informed by SMS, adding that the offer is valid for instalments due between 1 May and 31 May. However, customers are free whether to withdraw or maintain making instalment payments. Throughout the holy month, ADIB hosts Ramadan tents across the UAE that organise Iftars managed by the bank’s employees who have volunteered to be part of the initiative.

Moody’s expects strong growth in the Islamic finance sector in 2019

Moody’s Investor Services expects strong growth in the Islamic finance sector, reflecting the increasing demand for Shari’ah-compliant financial instruments. The rating agency stated that familiarity as well as understanding of the instrument is increasing and there are no barriers to investors, both Islamic and conventional to investing in these issuances. The growth in the Islamic finance sector is expected to translate into stronger prospects for green Sukuk issuance by sovereigns and financial institutions. The green Sukuk market will benefit from the buoyant demand as institutional investors seek to integrate sustainability into their asset allocation and risk management practises.

The #UK can be a world leader in Islamic finance

According to Al Rayan Bank CFO Amir Firdaus, Islamic finance is reinforcing the UK’s position as a global financial hub. London is the leading centre for Islamic finance outside the Muslim world, with assets of UK-based institutions that offer Islamic finance services totalling more than $5bn. More than 20 banks in the UK offer Islamic services, and five of these banks are fully Sharia-compliant, including Al Rayan Bank. Al Rayan currently provides Islamic financial products to more than 85,000 customers in the UK. Last year, Al Rayan became the first bank in the world to issue a public sterling sukuk in a non-Muslim country. The London-listed £250m securitisation was rated AAA by Standard & Poor’s and Aaa by Moody’s Investors Service and was significantly oversubscribed. The appeal of Islamic finance is growing steadily, more than a third of Al Rayan Bank’s customers are currently believed to be non-Muslim.

CBK rejects Warba Bank #merger with KMEFIC

In February, Kuwait’s Warba Bank announced the purchase of Ahli United Bank (AUB) and its subsidiary to acquire their collective 75.7% stake in Kuwait & Middle East Financial Investment Company (KMEFIC).
Warba Bank said that the Central Bank of Kuwait (CBK) has rejected its proposed acquisition of a controlling stake in KMEFIC. According to CBK, Warba Bank's acquisition of AUB’s stake in KMEFIC will not have a significant effect on the financial position of the lender. The purchase agreement came at a time when mergers and acquisitions in the Gulf’s financial sector are rising as lenders attempt to improve their financial standing through consolidation.

QIB launches #Takaful product for low-income workers

Qatar Islamic Bank (QIB) announced the launch of its affordable Takaful product for low-income workers called "Family Sheild - WPS". This low cost Takaful product can also be purchased by companies who want to give additional protection to their employees. The plan can be purchased by contributing QR10 per month or QR120 per annum and provides a cover of QR50,000 for death and QR100,000 in case of death due to accident. D. Anand, General Manager of Personal Banking Group at QIB, said the Family Shield WPS Takaful plan was designed for expatriate workers and can be easily purchased instanty over the counter without any medical tests. He added that QIB was well aware of the worker’s concern for their family’s well being in case of unseen events and wanted to provide them with an affordable and useful Takaful solution.

Islamic financing marketplace Alami bags funding led by Singapore-based tryb

Indonesian startup Alami has closed an undisclosed pre-seed round led by fintech investor tryb. The company’s peer-to-peer (P2P) platform recently obtained a P2P registration from the country’s Financial Services Authority and is set to soon expand its business into the Shariah-compliant P2P financing space. The fresh funds will be used for product development and market expansion. Indonesia has the largest Muslim population in the world, but the country's Shariah finance sector has historically lagged behind other markets with large Muslim populations. Alami CEO Dima Djani said tryb’s South-East Asian fintech expertise provides strong validation of its business model and key support for its growth plans.

Global #sukuk market to hit $2.7trln by 2030: Franklin Templeton

According to investment management firm Franklin Templeton, the global sukuk market is set to grow at a compound annual rate of around 15% to reach $2.7 trillion by 2030. Global sukuk issuance stood at over $477 billion at the end of last year, but has slowed somewhat in recent years. Ratings agency S&P in January described sukuk issuance as 'mild' in 2018, as the total amount of sukuk issued dropped by 5% to $114.8 billion. It forecast issuance of $105 billion-$115 billion for 2019. Mohieddine Kronfol, head of fixed income at Franklin Templeton, forecasts that the growth continues at a relatively rapid pace. In GCC markets several corporate entities have been issuing debut sukuk in recent months. Saudi Telecommunications Company issued its debut $1.25 billion sukuk on Sunday, following on from Saudi food company Almarai’s first $500 million sukuk in February.

S&P: GCC Islamic Banks to Show Resilience in 2019,2020

According to S&P Global Ratings, Islamic banks of the Gulf Cooperation Council (GCC) are expected to show resilience over the next two years after weathering tough market conditions in 2018. Last year they expanded slower than conventional peers for the first time in five years. The growth forecast for Islamic banks for 2019-2020 is the same as what the rating agency is estimating for conventional lenders in the region. S&P Head of Islamic Finance Mohamed Damak forecasts a muted GCC economic growth over this period, despite some benefit from government spending and strategic initiatives such as national transformation plans and Dubai Expo 2020. However, with the transition to IFRS9/FAS 30, Islamic and conventional banks will even more closely align. Another trend is the significant increase in Islamic banks’ coverage ratios at end-2018, coupled with a stable cost of risk that is lower than conventional banks.

Fixed Income: Bite-sized #sukuk with #blockchain

According to Matthew Martin, founder of microfinance investment fund Blossom Finance, technology will make sukuk issuance much cheaper and simpler as well as more available to investors and issuers. The potential for blockchain to transform the bond and sukuk space was noted by S&P Global Ratings last October. The rating agency wrote that blockchain and smart contract protocols could increase the transparency of cash flows and underlying assets. The World Bank created the first public bond to be managed using blockchain last August. According to Reuters, the prototype deal was as a step towards moving bond sales away from manual processes. Blossom will also use blockchain to record all transactions on the ledger. Currently, the company is selectively listing investors who want to be part of the pilot.

Syndicate content