Tuesday, April 28, 2015

Islamic banking industry gains IMF-inspired financial indicators


Tuesday, 28th April 2015

S&P 500 Shariah
Dow Jones Islamic World
FTSE Shariah All World
Russell - IdealRatings Islamic Global
1,858.70
3,032.49
2,141.45
1,964.67
-4.89 ( -0.26%)
3.38 ( 0.11%)
5.68 ( 0.27%)
6.35 ( 0.32%)

HIGHLIGHTS: IFSB launches Prudential and Structural Islamic Financial Indicators – RHB appoints new CEO – New Shariah legal framework for GCC family businesses in the works



Daily Cover


GLOBAL: The IFSB has launched a set of measures assessing the health of the Islamic banking systems of various countries – the first of its kind in the world which allows stakeholders to effectively compare the growth of different global Shariah banking markets. Designed as a parallel to the IMF Financial Soundness Indicators (FSIs), the IFSB’s Prudential and Structural Islamic Financial Indicators (PSIFIs) are a timely and most welcomed market development as players have long lamented the lack of comparable and solid data critical to understanding and bolstering the rapidly evolving industry further.

A culmination of years of extensive consultation and development, supported by technical assistance from the IDB and Asian Development Bank, the PSIFIs take into consideration the uniqueness of Shariah compliant banking to deliver information on size, growth, structural characteristics, macroprudential conditions as well as capital adequacy and liquidity based on IFSB standards. A noteworthy feature of the PSIFIs database is that it includes metadata to enhance user comprehension.

At the present phase, the database includes aggregated data from 15 countries (Afghanistan, Bahrain, Bangladesh, Brunei, Egypt, Indonesia, Jordan, Kuwait, Malaysia, Nigeria, Oman, Pakistan, Saudi Arabia, Sudan, and Turkey) provided for by respective regulatory and supervisory authorities on a quarterly basis. When available, separate information on fully-fledged Islamic banks and Islamic windows will also be provided.

Representing “an important milestone in the ongoing transformation of Islamic finance into a globally significant undertaking” as according to secretary-general Jaseem Ahmed, the IFSB confirmed that the database will be expanded to include a wider base of jurisdictions and segments including Takaful and the Islamic capital markets. The standard-setting body is also looking at ways to increase the user-friendliness of the platform via an automated web-based system planned for the near future.



Singapore: An IFN Correspondent Report


Islamic crowdfunding in Singapore gaining momentum
A first of its kind summit, entitled the ‘Ethical Investment and Entrepreneurship Summit’ was organized in Singapore in mid-April by Bizmedia Publishing and Amanah Asset Management, attracting almost a 100 participants. The summit extolled the virtues of analyzing investments through an ethical lens, and promoted the adherence to Islamic financing principles.






Today's IFN Alerts


GLOBAL: Islamic legal framework for GCC family businesses to take effect in the next two to three years

BAHRAIN: Bahrain Bourse adopts the rules on real estate investment trust listing for both Shariah compliant and conventional REITs

GLOBAL: Itqan Capital and Mubasher Financial Services to create region's first Shariah compliant global brokerage firm

MALAYSIA: Johor Corp to list RM900 million (US$252.87 million) Islamic real estate investment trust on Bursa Malaysia's main market in the third quarter

GLOBAL: Iran strengthens bilateral ties with Indonesia and Singapore

MALAYSIA: Bursa Malaysia launches 'BursaLINK' for enhanced efficiency

OMAN: Al Madina Takaful enhances digital presence with Takaful mobile application

SAUDI ARABIA: QInvest Saudi Arabia Company to decrease capital by 10-fold

KUWAIT: RAM reaffirms Kuwait's sovereign ratings at 'gAA3(pi)/Stable' and 'seaAAA(pi)/Stable'

MALAYSIA: RHB Banking Group names Khairussaleh Ramli as new CEO

OMAN: Bank Dhofar appoints Osama Fathi Abdallah Al Mansour as deputy general manager - head of transformation



















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