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Jaiz Bank: First shared-profit bank in #Nigeria approaches 10 years

Nigeria’s first non-interest bank has moved from being a regional bank to a national bank, with several branches and customers. JAIZ International was established on 11th of November 2011, and began the long walk to the actualization of their dreams. On 6 January 2012, operations commenced at the branches in Abuja, Kaduna and Kano. In 2013 it was permitted to increase shareholding capital to $92.3 million (NGN14.3 billion), and subsequently applied for a national banking license which it received in 2016. Audited financials from the company show that the company is fast growing to make up for the early years of little or no profit. Total assets grew 54% YOY, from N108.4 billion in 2019 to N167 billion in 2019, while deposits rose 50% to N127 billion, from the N85 billion recorded in 2018. The recently reported Q2 2020 unaudited reports show that the bank had a fair outing in the second quarter of the year, with a clear improvement across all indicators in comparison to Q2 2019.

Nigerian Islamic bank Jaiz targets N5.41b gross income in Q4

Jaiz Bank has projected that the flagship non-interest bank will post a gross income of N5.41 billion in the fourth quarter with average pre-tax profit per average sales expected at 13.03%. The bank predicted that profit before tax will be N705.37 million while profit after tax is expected to close the three-month period at N634.83 million. Jaiz Bank Managing Director Hassan Usman said overall vision of the bank was to become the leading non-interest financial institution in Sub-Saharan Africa. The bank wants to develop small and medium enterprises (SMEs), grow with them and support them not only for profit making but to ensure the country achieves real growth. He noted that while the bank would continue to expand its operations across the country by opening more branches, it will significantly leverage on technology and bring the semi-banked and unbanked population into the formal economy.

Kenya: State Urged to Expand Sharia Compliance Loans to Muslims

As the coronavirus pandemic continues to disrupt businesses in Kenya, the Muslim community has been urged to take advantage of financial institutions offering low bank charges. Islamic finance expert Khalfan Abdallah has urged the government to rethink how to accommodate Muslims in various financial support programmes such as Youth and Women Fund. Mr Abdallah said the government should borrow a leaf from Momentum Credit Micro Finance which has started offering Sharia compliance loans to Muslims using logbooks as collateral. He urged the Muslim business community who are affected by Covid-19 pandemic to take advantage of Momentum Sahih products.

Noor Takaful presents N15m surplus cheques to policyholders

Noor Takaful has announced the distribution of surplus (cashback) payment worth over fifteen million Naira to participants who did not make claims. The company has also announced the launch of its mobile app to make its products and services more accessible to the retail market. This second batch of payment is an increase from 12 million naira distributed in 2019 to policyholders who did not make claim in that pertaining year. Acting Managing Director of the company, Aminu Tukur stated that the distribution of surplus to policyholders has continued to serve as a big pull for the Takaful insurance market with interested participants joining daily.

State urged to expand sharia compliance loans to Muslims

As coronavirus pandemic continues to disrupt businesses in Kenya, the Muslim community has been urged to take advantage of financial institutions offering low bank charges to jump-start their businesses. Islamic finance expert Khalfan Abdallah has urged the government to rethink how to accommodate Muslims in various financial support programmes such as Youth and Women Fund. Mr. Abdallah said the government should borrow a leaf from Momentum Credit Micro Finance which has started offering Sharia compliance loans to Muslims using logbooks as collateral. The official said to bail out Muslims during these hard times, such affordable credit facilities which are sharia compliance are required.

Sombank takes Islamic banking to the cloud with Temenos

Somalia's Sombank selected the Temenos Islamic Banking solution in the cloud to accelerate its digital transformation and create innovative products to increase access to financial services in Somalia. Sombank will implement the full front-to-back Temenos Islamic Banking platform, which combines the capabilities of Temenos Infinity and Temenos Transact. Temenos’ cloud-native technology will allow Sombank to create innovative digital products and offer lower cost services. Currently, Sombank serves customers via branch and online network and representative offices throughout Somalia. The bank will use the Temenos Infinity digital front office to create a unified customer experience for all financial and non-financial services across all channels.

Uganda: Resolve Islamic Banking Delay, Finance Minister Directs Bou

Finance Minister Matia Kasaija has said that whereas Bank of Uganda still has challenges, it should work around the clock to quickly resolve the pending establishment of Islamic Banking. Mr Kasaija said that, as government, they had done their job to pass the law and it was now the work of the Central Bank to operationalise the Shari'a-based banking system. In 2016, government enacted the law that would introduced Islamic Banking, agent banking and bancassurance, among other products. However, whereas other products have already been established, implantation of Islamic Banking continues to be delayed.

Collaboration Between Industry and Academia, Key To Developing Islamic Finance In Nigeria

Dr. Umar Oseni said that the collaboration between Islamic finance practitioners and academia will be vital to the development of Islamic Finance Law in Nigeria. Dr. Umar Oseni also said that western models dominate financial markets and that conventional banking has existed for over 200 years, while the Islamic finance reemerged towards the end of the last century with Tabung Hajji, West African Muslim Bank, and IsDB which was established in 1975 and this has brought improvement in the Islamic finance industry.

How relief measures impact Islamic banking clients

Due the Covid-19 pandemic crisis all banks have introduced measures to help customers that are struggling. Islamic banking are offering now cirisi products and are more flexible to their costumers and their needs.

Tribune/Finance islamique : comment la #Guinée peut-elle saisir les opportunités de l’émission des Sukuk (emprunt obligataire islamique) ?

Plusieurs pays africains se lancent depuis quelques années dans cette finance d’éthique et prometteuse. Présentement, les différents gouvernements de l’espace UEMOA (Union économique et monétaire ouest-africaine) ont déjà élaboré un cadre règlementaire à travers la Banque centrale des États de l’Afrique de l’Ouest (BCEAO) pour réglementer l’émission des Sukuks souverains dans leur zone. Des États de l’UEMOA ont déjà émis des Sukuks à hauteur des centaines de milliards de francs CFA. Il est important que la Guinée emboite les pas à ses pays voisins pour prendre en compte la finance islamique dans son écosystème financier en adoptant ce modèle et l’harmonisant avec les modèles classiques dans le but de mener une politique de pluralismes dans l’attraction des investissements étrangers pour les secteurs privés et publics.

Abdulkader Thomas To Speak on Islamic Trade Finance: Challenges and Opportunities in #Nigeria

WebTV's Islamic Finance Weekly will be featuring a robust conversation with Abdulkader Thomas on Islamic Trade Finance, Challenges and Opportunities in Nigeria and Africa. Key discussion points include: understanding the concept of "Islamic Trade Finance"; how the Islamic Trade Finance Framework is helping to boost Intra-African trade; challenges and opportunities for integrating Islamic Trade Financing to support African businesses and SMEs; how Islamic Finance can be adopted to support the development of the economy and lift millions of people from poverty.

Dantata, Dangote et Indimi : qui sont les oligarques derrière la banque islamique Jaiz du milliardaire Umaru Mutallab ?

Le vétéran de la banque et ancien ministre Umaru Mutallab s'est reconverti dans la finance islamique avec d'autres notables et magnats du nord du pays, tels qu'Aminu Dantata, Aliko Dangote et Muhammed Indimi. Ils sont soutenus par la banque publique saoudienne Islamic Development Bank.

REMINDER: FGN Ijara #Sukuk Bond auction?closes on 2nd June 2020

The Nigerian Debt Management Office has reminded the general public that the offer for subscription to the N150 billion FGN Ijara Sukuk Bond will close on Tuesday June 2nd, 2020. Proceeds from the Ijara Sukuk Bond auction will be used solely for the construction and rehabilitation of key roads across the six geopolitical zones of the country.

International Islamic Trade Finance Corporation (ITFC) supports Senegal’s COVID-19 Plan with EUR 8 Million disbursement for the Private Sector

The International Islamic Trade Finance Corporation (ITFC) has approved a Murabaha Financing of EUR 8 million for the Senegalese bank Banque Islamique du Sénégal (BIS). The Murabaha facility is expected to support around 1,000 jobs within the private sector, including companies in food and distribution. The swift disbursement of this financing by ITFC has enabled local private companies to procure urgent food staples, and support national response efforts to ensure food security.

TAJBank announces N150b Fed Govt #Sukuk Bond Issuance

Nigerian TAJBank has announced a N150 billion Sukuk Bond of the Federal Government. The FGN Sukuk 2020 is open to investors, which include retail investors, high networth individuals, institutional investors such as commercial banks, insurance/takaful companies, pension fund administrators, asset managers, ethically inclined investors, cooperative societies, religious bodies as well as state investment firms. Considering the state of the economy and as several countries grapple with the economic impact of COVID-19, Sukuk is a tool to help countries and businesses develop sources of long-term, stable financing. Book building commenced on May 21 while funding would be on June 2.

South Africa working on rand-denominated #sukuk issue

The Republic of South Africa is working on a rand-denominated sukuk for the financial year 2020/2021. Details regarding the size, tenor and structure of the Shariah-compliant notes will be made in due course. The government may also consider issuing a second sovereign U.S. dollar sukuk in the long term. South Africa issued its first-ever international sovereign sukuk in 2014. The deal consisted of a $500 million 5.75-year note, offering a profit rate of 3.90%.

BOFIA Act Should Be Reviewed To Enhance Islamic Banking In #Nigeria - Abdul -Wahab Saadudeen

According to Imam Abdul-Wahab Saadudeen, the Banking and Other Financial Institutions Act (BOFIA) should be reviewed to enhance Nigeria's Islamic banking industry. He believes the regulatory bodies must take into cognizance the principles of Islamic Finance to create an enabling environment for its growth in Nigeria. The Islamic scholar noted that over the years, the Islamic Banking legal framework has not been reviewed to reflect the developments taking place now. He made a strong call for a competent Sharia Advisory Board to ensure that Islamic Banks and Financial Institutions are not exposed to avoidable systemic risks. He also called for more clarity in Islamic Banking because it seeks to boost financial inclusion, achieve sustainable development and economic prosperity for all Nigerians.

#Nigeria: Islamic Finance - Opportunities, Challenges and Policy Direction

Despite its growing acceptability around the world, there are untapped opportunities that can be accessed through Islamic finance in Nigeria. When the Central Bank of Nigeria (CBN) granted approval to the defunct Habib Bank to operate an Islamic banking service window, the attempt did not register a significant success but it kickstarted Islamic banking in the country. The Securities and Exchange Commission has issued Rules on Islamic Fund Management and Sukuk Issuance. Similarly, the Nigerian Stock Exchange and Lotus Capital have developed an Islamic capital market Index. The National Pension Commission had in 2019 issued Regulation on Investment of Pension Fund Assets which recognised Government Sukuk as one of the accepted classes of assets for pension funds investment. In all, the Nigeria Islamic Finance Industry is fairly backed by regulations, sound supervisory structure and fragmented legal framework.

#Kenya: Djibouti's East African Bank Distance Self From Kenya Registered Bank

The East Africa Bank based in Djibouti has written to the Central Bank of Kenya raising concerns of a fraud using the bank's name and logo. Curiously, the logo, colours and the information on the website of the East African Savings Bank (EASB) are similar to those of the East Africa Bank based in the capital city of Djibouti. Both East Africa Bank and East Africa Savings Bank are apparently Sharia compliant. The East Africa Bank has already reported to the Central Bank of Kenya as well as the Banking fraud investigations unit for further action. The East Africa Bank believes this is a fraudulent misrepresentation and urges all customers to avoid dealing with the said entity.

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