Relevance on Islamic Principle Law with Application at the Field: Review of Islamic Banking Publication in IndonesiaFatwa, Fuqaha, Hadith, Ijtihad, Islam, Islamic banking, Maqasid, Wakalah

Impact of Credit Risk Management on the Performance of Islamic and Commercial Banks in Saudi ArabiaIslamic banking, Murabahah, Musharakah, Credit Risk, Provision

Bank Kerjasama Rakyat Malaysia (Bank Rakyat) has launched a Senior Islamic Medium Term Notes (Sukuk Wakalah) programme of up to MYR 10 billion via Imtiaz Sukuk II, which is a special purpose vehicle (SPV), according to local media reports.  Why it Matters?  The launch comes ahead of the issuance of MYR 300 million of Sukuk Wakalah (Series 3) and MYR 700 million of Sukuk Wakalah (Series 4) on the 19th of April 2021. Proceeds of the Sukuk Wakalah will be used for Bank Rakyat’s Shariah-compliant busines...

Indonesia’s Financial Services Authority (OJK) stated recently that although the growth rate of the Islamic financial industry in the country surpassed that of the conventional finance industry in 2020, the market share of Islamic finance in Indonesia’s economy would still not expand sufficiently to exceed 10%, should growth continue at the same pace. The OJK elaborated that there are five key requirements being developed that are needed to make Islamic finance a major player within the country’s eco...

On the 15th of April 2021, Labuan International Business and Financial Centre (Labuan IBFC) and Qatar Financial Centre Authority (QFC) signed a Memorandum of Understanding (MoU) in order to strengthen financial ties. Chief Executive Officer (CEO) of Labuan IBFC, Farah Jaafar-Crossby, and CEO of QFC, Yousuf Mohamed Al-Jaida, signed the MoU.  Why it Matters?  Labuan IBFC and QFC are strategically situated in Asia and the Middle East, respectively and are significant catalysts for regional economic growth. The goal is to create a mut...

Dubai Islamic Bank (DIB) has successfully priced a USD 500 million Additional Tier-1 (AT1) Sukuk issuance on the 15th of April 2021. The perpetual non-Callable AT1 Sukuk, which has a tenure of 5.5 years, offers an annual profit rate of 3.375% according to a statement issued by the bank.  Why it Matters?  The Sukuk issuance marks DIB’s second deal in six months, as the bank continues to build its financial buffers. The latest issuance is the lowest-ever pricing by a Gulf Cooperation Council (GCC) bank (both conventional...

Pemeringkat Efek Indonesia (PEFINDO) has affirmed the ‘idAAA(sy)’ ratings of Indonesia Eximbank’s Shelf Registered Sukuk Mudharabah I Phase I Year 2018 Series B (IDR 365 billion) and Sukuk Mudharabah II Phase I Year 2020 (IDR 100 billion). In addition, the ratings agency has affirmed the corporate rating of the bank at ‘idAAA/Stable’ and outstanding debt securities issued at ‘idAAA’.   Ratings Rationale The ratings reflect Indonesia Eximbank’s superior capacity to...

Standard Chartered Securities, a subsidiary of Standard Chartered Bank, has been granted approval to conduct Islamic investment business via an Islamic window in Brunei. It is the first capital market service licence holder in the country to have obtained this approval from Autoriti Monetari Brunei Darussalam (AMBD) and the Syariah Financial Supervisory Board (SFSB).  Why it Matters?  Chief Executive Officer of Standard Chartered Bank, Pengiran Aki Ismasufian bin Pengiran Haji Ibrahim (Pg Aki), stated that this gives all clients,...

The International Islamic Trade Finance Corporation (ITFC), part of the Islamic Development Bank Group (IsDB) has signed two agreements with the Republic of Cameroon on the 12th of April 2021. The first is a USD 750 million three-year framework, in which the ITFC will provide Cameroon USD 250 million annually over three years to support key sectors through integrated trade solutions. The second agreement is a EUR 98 million Murabahah Financing agreement in favour of Société de Développement du Coton (SODECOTON), to purchase agricultural inputs. &nb...

During a speech to launch Ramadan as the National Waqf Month on the 13th of April 2021, Prime Minister of Malaysia, Tan Sri Muhyiddin Yassin, spoke of formulating an initiative at the federal level in order to encourage government workers to make waqf (endowment) contributions, particularly periodic ones, via deductions from their salaries. He said this was amongst the four key points that were outlined to make sure that Waqf becomes a significant element in helping the economy of Malaysia.  Why this Matters?  The federa...