|
GLOBAL: This week’s
review highlights a potentially game-changing development which emerged in
the past seven days, covers selective major headlines in the Islamic
finance world as well as tracks the robust movement of the industry’s
movers and shakers.
Following our exploration on the usage of
cryptocurrency in Islamic finance last week (See IFN Report Vol 12 Issue
19: ‘Company Focus – Blossom Finance’), IFN today can exclusively reveal
that the Islamic crowdfunding platform Blossom Finance, which incorporates
Bitcoins into their microfinancing business, will be making a pilot
investment of up to US$100,000 into BMT Nusantara Condet (a branch of the
BMT Nustantara group) to fund small to medium businesses in the Indonesian
capital.
Extremely rare in the Islamic finance space, this landmark Bitcoin
transaction demonstrates the potential of integrating digital currency or
blockchain technology into Shariah compliant financial transactions to
enhance transparency and optimize efficiency. “Using Bitcoin in a Shariah model
should come as no surprise. Shariah mandates ownership of underlying assets
and Bitcoin provides proof of ownership with absolute, mathematical
certainty,” explained Matthew Joseph Martin, CEO of Blossom, to IFN. “We’re
using digital currency technology to make impact investing transparent and
independently verifiable.”
In Malaysia, the hornet’s nest was stirred when it was revealed that the
country’s national pilgrim funds board, Lembaga Tabung Haji, invested
RM188.5 million (US$52.76 million) for a parcel of land from debt-laden and
highly controversial sovereign wealth fund 1Malaysia Development (1MDB).
The acquisition is deemed exorbitant and disproportionately risky in many
quarters, with allegations that the purchase is a bailout of the ailing fund.
Since the revelation, the investment portfolio of several entities were
also scrutinized including the country’s largest fund manager, Permodalan
Nasional, which denied allegations that it purchased 1MDB’s Sukuk; and
Takaful Malaysia which confirmed it purchased RM85 million (US$23.79
million)-worth of Sukuk from 1MDB’s previous incarnation, Terengganu
Investment Authority, in 2009.
The market also saw particularly strong movements at management level this
week. Steve Bertamini, previously the group executive director and CEO for
global consumer banking of Standard Chartered Bank, has moved on to lead Al
Rajhi Bank effective on the 18th May. IFN has learned that the
CEO position at CIMB-Principal Islamic Asset Management is currently vacant
following the departure of Ramlie Kamsari from the group, while the
president and CEO of EXIM Bank Malaysia, Adissadikin Ali, tendered his
resignation effective today. BIMB Holdings has restructured its management
by appointing the former chief financial officer (CFO) of Bank Islam
Malaysia, Malkit Singh Maan, as its new group financial officer, taking
over from Mohamad Azlan Mohamad Alam who will be re-designated as the chief
operating officer. Mohd Muazzam Mohamed, previously a partner of KPMG
Malaysia, will step in as CFO of Bank Islam.
Moving over from Great Eastern Takaful, Mohamad Salihuddin will take the
helm at AmMetLife Takaful, succeeding Wan Zamri Wan Zain who will step down
today; while AIA, which offers Takaful solutions, appointed Anusha
Thavarajah as chief, effective next month subject to central bank approval.
In the Middle East, it has been confirmed that Sheikh Nasr Amer Al Hosni
has resigned from the board of directors of Takaful Oman Insurance, and in
Bangladesh, IFN Correspondent M Shamsuzzaman has been promoted from
executive vice-president of Islami Bank Bangladesh to deputy managing
director.
|
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.