A licensed trustee firm in Bangladesh can oversee traditional bonds and Islamic asset-backed securities, such as Sukuk, valued up to 100 times the trustee company's paid-up capital net worth, according to a Bangladesh Securities and Exchange Commission (BSEC) instruction issued on the 14th of September 2021. The ratio will be 75 times if the trustee firm's net worth is lower than its paid-up capital. Why it Matters?  The move is said to reduce the risks surrounding depending on a trustee that itself struggles financially. The BSEC also set some criteria for the tru...

Junaid Ahmed, Chief Executive Officer at Dubai Islamic Bank Pakistan, has said that the Government of Pakistan needs to issue domestic Sukuk regularly in order to make sure that Islamic banks compete on equal footing with conventional banks. Why it Matters?  The Government is making positive progress towards issuing additional Sukuk, which is likely to happen soon. This will give Islamic banks the essential push to invest in order to put extra deposits to good use. It will also assist Islamic banks in attracting new deposits and distributing profits to depositors i...

The Foundation for Islamic Endowment Funds Indonesia, also known as Green Waqf Indonesia, has entered into a landmark agreement with Dublin-based Islamic Business and Finance Network (IBF Net), according to a statement issued on the 10th of September 2021. Under the agreement, IBF Net will create a digital portfolio out of green assets such as trees planted by Green Waqf Indonesia. The carbon savings from these trees will be converted into green cryptos, which reflect real values to the economy, and will subsequently be traded on the Impact Exchange, which is a bl...

Qatar Financial Centre (QFC), an onshore financial and business centre, signed a Memorandum of Understanding (MoU) with Rwanda Finance (RFL) to facilitate initiatives that will promote the international development of both QFC and Kigali International Financial Centre. Why it Matters?  Through training programmes, information transfer, and cultivating a culture of continuous improvement within the financial landscape, the agreement would also help support capacity growth and skills development. Additionally, it would promote the formation of a community between Qatar&rs...

According to the Qatar Central Bank, in July 2021, Qatar's Islamic banks recorded faster growth than traditional lenders in extending domestic credit to several sectors, except real estate.  Why it Matters?  Islamic banks outperformed conventional banks owing to greater growth in domestic loans to the public sector, services, trade, consumption, contracting and industries. Furthermore, although there was a decline in credit extended by foreign banks, overall domestic credit saw growth. Qatar's commercial banks' overall domestic credit increased...

In a virtual meeting between Omar Ayub Khan, Pakistan’s Minister for Economic Affairs and Hani Salem Sonbol, Chief Executive Officer of the International Islamic Trade Finance Corporation (ITFC), the latter confirmed the availability of USD 600 million to Pakistan allowable for commodity financing. This falls under the three year (2021-2023) new framework agreement worth USD 4.5 billion, contracted by both parties in June 2021.  Why it Matters? The USD 4.5 billion facility was cemented to support the financing of oil, liquefied natural gas (LNG), as well as f...

The Islamic Financial Services Board (IFSB) has issued the Exposure Draft of Core Principles for Islamic Finance Regulation (Financial Market Infrastructures) (CPIFRFMI) for Public Consultation, according to a statement published on the 10th of September 2021. Comments from regulatory and supervisory authorities (RSAs), international organisations, institutions offering Islamic financial services (IIFS), academics and other parties are invited for a period of 45 days, from the 10th of September 2021 until the 25th of October 2021.  Wh...

In its latest bulletin for the April to June 2021 quarter, the State Bank of Pakistan (SBP) reported that the assets and deposits of the Islamic Banking industry (IBI) had increased by 32% year-on-year (YoY) and 29.7% (YoY), respectively in the second quarter of 2021(2Q 2021).  Why it Matters? As a result, the IBI reached the highest YoY growth since 2015 and was also able to increase its asset and deposit market share in the overall banking industry to 17% and 18.7%, respectively.  This was in comparison to market shares of 15.3% and 16.9%, respect...

According to the statistics of the Central Bank of Oman (CBO), the country’s Islamic banking industry has had rapid growth despite the slowing of the economy caused by the COVID-19 pandemic. Total assets in Oman’s Islamic banking sector increased to OMR 5.7 billion as at end of June 2021, up 16% year-on-year (YoY). Why it Matters? Growth has been driven by undiminished demand for Shariah-compliant products in Oman. Total assets the Islamic banking sector in Oman made up approximately 15.1% of the cou...

Moody’s Investors Service (Moody’s) has assigned first time local and foreign currency long-term and short-term bank deposit ratings of Caa2/NP for Iraq-based Al-Qabidh Islamic Bank for Finance and Investment (QIBFI). The outlook for the long-term deposit ratings is stable. Concurrently, Moody’s has assigned a Baseline Credit Assessment (BCA) and Adjusted BCA of caa2 for the bank. QIBFI, which conducts Shariah-compliant banking for clients through its head office in Baghdad, Iraq, was established following its transformation from Al-Muhaj Financial Transfer Company. &nbs...