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GLOBAL: Jitters may have
been sent through the markets when S&P
slashed its 2015 Sukuk volume forecast by half in light of
Bank Negara Malaysia’s exit; however, as IFN explored earlier in the week,
this Sukuk gap may not necessarily be a blow to the industry as it opens up
avenues for other issuers to step in (See IFN Daily Cover: ‘BNM’s exit from
Sukuk space – an opportunity for others to shine’). It is also important to
note that BNM aside, the Islamic
bond issuance market performed in line with expectations during the first
half of 2015 despite volatile market conditions due in
great part to the presence of a wider Sukuk issuer base – a testament to
the rising stature of Shariah financial instruments among both core and
non-traditional players. The World
Bank committing itself to the Islamic finance industry this
week is a timely recognition of this reality. The global financing
institution signed an MoU with the Bahrain-based General Council for
Islamic Banks and Financial Institutions paving the way for the two
entities to develop the industry by strengthening regulatory infrastructure
and knowledge exchange.
Extending its reach to all corners of the world, Islamic finance is a
success story waiting to unfold in Africa as non-core markets gear up to
embrace this mode of financing. Ugandan
players, particularly Crane Bank, are apparently ready and eager to roll
out Islamic financial products on a window basis. According
to Daily Monitor, Crane Bank is merely waiting for legislation to come into
effect. The bank is one out of three conventional banks which applied for
an Islamic banking window license. Over in Tanzania, demand and product
take-up are rising as the National
Bank of Commerce has finally begun extending Shariah financing facilities
via its Islamic window launched five years ago.
The Bank of
Tokyo-Mitsubishi became the first Japanese bank to obtain approval from
regulators to conduct Islamic finance business outside Japan
as it secured a license from the Dubai Financial Services Agency on the 8th
July to operate an Islamic window. This follows recent reforms in Japan’s
supervisory guidelines to ease the provision of Islamic finance by Japanese
entities.
Half-yearly financial statements are rolling in and things are looking up for Saudi
Arabian banks as they report positive balance sheet growth including Al
Rajhi Bank which has for the past two years registered
declining profits. The Islamic banking giant managed to push second-quarter
profits up by 27.78% as compared to the previous three months by lowering
operating expenses and also at -0.41%, narrowed the gap of shrinking
earnings on a year-on-year basis – a marked improvement from the 10.9%
year-on-year plunge during the January-March 2015 period.
New hires were
announced across the board this week: In Qatar, Ziad
Makkawi was named the new CEO of Qatar First Bank while Barwa Bank promoted
Ahmed Abdulaziz Al Emadi to lead its corporate banking division. Bahrain’s
Ibdar Bank appointed Ahmed Al-Rayes as chief investment officer while in
Bangladesh, Md Mustafa Khair climbed the ranks from senior executive
vice-president to deputy managing director of First Security Islami Bank.
In the UK, Islamic financial market intermediary firm Eiger Trading
welcomed Riyad Bank’s John Morris as an associate director, and Islamic
real estate specialist 90 North opened the doors to Susan MacLachlan its
new group financial controller, investment associate Kai Chu and executive
assistant Charlotte Dennison.
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