Posts Tagged ‘Bahrain’
Bahrain Islamic Bank is named best in region
Points of Essence:
- Bahrain Islamic Bank won an award for the best Islamic institutional finance bank in the Gulf region from World Finance magazine. The award is for the bank’s overall performance and excellent reputation among its peers. The Gulf Daily News has the report.
MANAMA: Bahrain Islamic Bank (BisB) has been named the “Best Islamic Institutional Finance Bank in the Gulf region”, by World Finance magazine.
CBB to host workshops on financial standards
Points of Essence:
- Bahrain will host workshop on Islamic finance related standards issued by the Islamic Financial Services Board. Aimed at facilitating better implementation of the standards, the workshops will cover the issues of supervisory review process, risk management and corporate governance. Gulf Daily has the report.
MANAMA: The Central Bank of Bahrain is hosting the Islamic Financial Services Board – Facilitating the Implementation of Standards (IFSB-FIS) workshops.
Islamic bank launched in Bahrain
Points of Essence:
- Bahrain has recently welcome the newly launched Capinnova Investment Bank, the Shariah compliant investment arm of BBK. Focusing to serve the GCC and MENA markets, the bank which core areas of business include private equity, asset management and corporate finance, will provide Shariah compliant investment products and services. This will strengthen Bahrain’s position as one of the main global drivers of Islamic finance.
By ARTHUR MACDONALD
MANAMA: Bahrain-based BBK has announced the launch of Capinnova Investment Bank, its new Sharia-compliant investment banking arm. A wholesale Islamic investment bank, Capinnova is licensed by the Central Bank of Bahrain and capitalised at $500 million with a fully paid-up capital of $125m.
“The growth of Islamic banking industry in particular has been remarkable in recent years and it is expected to reach $4 trillion in the next five years according to a recent Standard and Poor’s rating agency report,” said BBK chief executive officer and Capinnova Investment Bank chairman A Karim Bucheery, at the launch of the bank at the Ritz-Carlton Bahrain Hotel and Spa yesterday.
CBB highlights training and development as key driver to success
Points of Essence:
- The Central Bank of Bahrain believes that a continuous and strategic investment in the training and development of its human talents will lead to a success of the institution. Islamic banking and finance is one of the priority areas. Ameinfo has the report.
The Central Bank of Bahrain (CBB) highlights training and development as a key driver to success.
Dr. Huda, Executive Director – Corporate Services, CBB, says:
‘Enhancing the capabilities and skills of the CBB staff is one of our core responsibilities.’
In order to achieve this; the CBB has adopted a rigorous strategy to recognize training requirements for the staff both collectively and individually in order to set out the necessary training programs which best meet those requirements.
Gulf Daily News: Al Salam Bank Bahrain’s New Branch Opens
Points of Essence:
- Al Salam Bank Bahrain transforms its newly opened branch at Bahrain City Center into a full banking suite to offer banking convenience for its clients. Top customer services and cutting edge facilities are prioritized at the branch to meet the sophisticated demands of its clients. Gulf Daily News has the report.
Bank opens new branch
MANAMA: Al Salam Bank – Bahrain has opened its second branch at Bahrain City Centre.
The branch houses a business centre that is equipped with the most sophisticated and state-of-the-art computer systems that are not found in any other bank in the country, executive vice- president and head of Mena Nabeel Al Tattan said.
Shamil Bank appoints Assistant General Manager, Investment Banking
Points of Essence:
- Bahrain based Islamic bank, Shamil Bank welcomes Brooke Borden as its new Assistant General Manager for banking investment. Borden is an experienced investment banker who previously led major public offerings and investment funds.
Shamil Bank, a leading Bahrain-based Islamic commercial and investment bank and a wholly-owned
Brooke Borden.
subsidiary of Ithmaar Bank, announced the appointment of Brooke Borden as Assistant General Manager, Investment Banking.
Borden, comes to Shamil Bank with more than 20 years of investment banking, private equity and mergers and acquisitions experience.
A seasoned investment banker, Borden has previously led initial public offerings (IPOs) on the NASDAQ (United States) and Tadawul (Saudi Arabia) exchanges.
With prior senior management experience at financial institutions in the Middle East and the United States, Borden has successfully managed and led major public offerings and investment funds.
Bahraini Chamber sounds alert over crisis
Points of Essence:
- Key industry leaders urged Bahraini Government to disseminate crucial information of the measures taken by the Government to cushion the impact of the US financial crisis to the Bahraini banking and financial sector. This will spur confidence to businessmen and investors alike.
By GEOFFREY BEW
A LACK of transparency about the impact of the global credit crunch in Bahrain could have disastrous consequences for the country’s economy, business leaders warned yesterday. The Bahrain Chamber of Commerce and Industry (BCCI) says the government must provide more information about its readiness to deal with the international crisis, which has slashed share values worldwide.
Bahrain to Host Islamic Banking Meet
Points of Essence:
- The 15th Annual World Islamic Banking Conference (WIBC) will be held next month in Bahrain, supported by the Central Bank of Bahrain. The event has confirmed participation from more than 1,000 delegates from 45 countries with prominent keynote speakers include Rasheed M. Al Maraj, the Governor of The Central Bank of Bahrain, and Heng Swee Keat, Governor of the Monetary Authority of Singapore. The highlight of the event will be its prestigious Islamic Banker of the Year Award.
By Suad Hamada
MANAMA -Bahrain will host the 15th Annual World Islamic Banking Conference (WIBC) next month that will bring together international industry leaders who have contributed significantly to forging the future of this industry to map out the next phase of development.
David McLean, the Managing Director of MEGA, the owners of the WIBC brand told Khaleej Times on Friday that WIBC will be celebrating 15 years of success in bringing together the industry’s thought leaders and foremost practitioners to chart the future direction of the industry.
BIBF launches Master’s degree in Islamic finance
Points of Essence:
- Bahrain based BIBF’s Centre for Islamic Finance will roll out its first Master’s degree with dual concentration in finance and Islamic finance in March next year. In collaboration with the De Paul University of Chicago, the program expects to address the shortage of critical talents in Islamic finance. BIBF will complement the existing training institutes in Kuala Lumpur (INCEIF) and London (IIBI).
MANAMA: BIBF’s Centre for Islamic Finance is introducing the first Master’s degree with dual concentration in finance and Islamic finance. The course, which begins in March, is a joint venture between the BIBF Centre and the De Paul University of Chicago.
Information exchange deal signed
Points of Essence:
- An MOU was signed between Malaysia’s INCEIF and Bahrain University for the exchange of information and experience, including professors and a commitment to conduct joint research in Islamic finance.
BAHRAIN University has signed a Memorandum of Understanding with the Malaysia’s International Centre for Education in Islamic Finance (INCEIF), it has been announced.
The agreement involves the exchange of information and experience, including professors and a commitment to conduct joint research in Islamic finance science.
Bahrain University president Ebrahim Janahi, INCEIF president Agil Natt and INCEIF professor of Islamic Business Management Hamzah Ismail signed the deal during a ceremony at the university’s Sakhir campus.
Bahrain University Faculty of Business Administration dean Nazim Al Salah revealed it plans to send a number of professors to a workshop on Islamic Jurisprudence Financial Sciences in Malaysia in November.
“The Islamic banking and financial science has become a sophisticated industry managing huge investments in the world,” he said.
“The industry still needs more qualified personnel, especially in Bahrain which is one of the most important centres of Islamic banks in the world.”
Source: www.gulf-daily-news.com
ABC posts $71m loss after write-down
Points of Essence:
- Arab Banking Corporation (ABC) reported a net loss of $71 million for the second quarter of 2008 following the write-down in entirety of its remaining net exposures to collateralized debt obligations (CDOs) of $134 million.
- This is undertaken in the face of continued deterioration in market values and uncertainties as to their ultimate recoveries.
- The bank has engaged consultants to conduct an in-depth review of its medium term strategy to cover all aspects of ABC’s operations – the economic and competitive environment.
Manama: Sun, 03 Aug 2008
Bahrain-based Arab Banking Corporation (ABC) has reported a net loss of $71 million for the second quarter of 2008.
This follows the write-down in entirety of its remaining net exposures to collateralized debt obligations (CDOs) of $134 million.
The international wholesale bank said it recorded a total income of $192 million for the quarter in its core business, an increase of 15 per cent over $167 million for the same period last year.
The bank is currently conducting an in-depth review of its medium term strategy, similar to the periodic reviews previously conducted in 1997 and 2003, said Hassan Juma, president and chief executive.
“This review will cover all aspects of ABC’s operations – the economic and competitive environment – the group’s vision of its future role and mission, and in addition, its banking model going forward. ABC will be assisted by external consultants in conducting this review,” he said.
The bank’s interest income at $$106 million was 54 per cent higher than $69 million for the same period last year from increased volume of loans and securities.
Non-interest income, which totaled $86 million was 12 per cent lower than $98 million earned last year, mainly due to the mark to market of the funds of hedge funds portfolio which, in view of the continued uncertainties in the international financial markets, ABC decided to completely exit in March 2008. Revenues from other income sources, including trade finance & forfaiting activities, project finance, Islamic financial services, corporate and retail banking, remain robust.
Operating expenses increased by a nominal eight per cent to US$92 million from US$85 million last year. ABC’s pre-provision cost income ratio for the second quarter of 2008 was 48%, lower than 51% for the same period last year.
In the face of continued deterioration in market values and uncertainties as to their ultimate recoveries, ABC decided to make a clean sweep and write-down in entirety its remaining net exposures to collateralized debt obligations (CDOs) of $134 million. This meant taking a provision of $134 million in the second quarter of 2008 (after writing down 78 per cent of the gross exposures of $614 million at the end of the first quarter of 2008) even though 70 per cent or $434 million is still current with interest payments. After this provision, the overall result was a net loss of $71 million for the quarter.
Consolidated total assets stood at $31.8 billion at the end of June 2008 (2007 year end: $32.7 billion). ABC’s securities’ portfolio, largely comprising highly liquid investment grade FRNs and securities guaranteed by US government agencies, declined to $12.1 billion from $13.6 billion at the end of 2007.
Loans and advances increased to $13.5 billion, up $1.2 billion as the lending portfolio continued to expand to meet customer demand. ABC’s liquidity remains strong, with the liquid assets to deposits ratio at 67 per cent (2007 year end: 72 per cent).
In June 2008 ABC’s share capital was increased through a priority rights issue to existing shareholders of one share for every share held, i.e. 1.0 billion shares at nominal value of $1.00 each and at a premium of $0.11 per share. ABC’s principal shareholders oversubscribed their rights in their pre-existing proportions. The allotment was completed on June 18, 2008, and ownership of ABC now stands as Kuwait Investment Authority 29.7 per cent, Central Bank of Libya 29.5 per cent, Abu Dhabi Investment Authority 27.6 per cent, and other shareholders 13.2 per cent.
At the end of the second quarter, and after provisions, shareholders’ equity stood at $2,154 million. ABC’s capital adequacy ratio at June 30, 2008, calculated on the basis of the Basel II capital adequacy regime with which ABC has been compliant since January 1, 2008, stood at 15.4 per cent, predominantly Tier 1 which totaled 12.8 per cent.
Juma said: “The successful completion of the rights issue is a recognition of the confidence of the shareholders in ABC’s strategy to focus on fulfilling the long-term needs of our clients and the aspirations of our shareholders, despite the ongoing challenging conditions in the financial industry.
“As ABC moves into the second half of 2008, the challenging conditions that impacted financial markets for the past year have continued and deepened. Despite this, increasing core earnings clearly demonstrate the success of our strategy – focusing on the Arab region and its trade flows. Our strengths in wholesale activities in Treasury operations, Islamic financial services and trade and project finance are providing additional income streams, coupled with our retail / SME subsidiaries in the Arab World.
“ABC is currently conducting an in-depth review of its medium term strategy, similar to the periodic reviews previously conducted in 1997 and 2003. This review will cover all aspects of ABC’s operations – the economic and competitive environment – the group’s vision of its future role and mission, and in addition, its banking model going forward. ABC will be assisted by external consultants in conducting this review,” he said. – TradeArabia News Service
KFH Automall promotion Drives Sales Beyond Expectation
Points of Essence:
- Kuwait Finance House’s product “Automall” proved to be a hit where sales chalked up beyond 50%. This is to provide Islamic financing for cars.
- Apart from providing a car purchase facility under one roof, customers will get to enjoy freebies in the form of car registration, rust proofing, thermal tinting and mobile phones as well as a discount on insurance.
The KFH Automall promotion, ‘Automall gets you moving faster’, received a greater than expected response from the public, rocketing sales by over 50%. It achieved its aim of allowing the customers to buy affordable cars both easier and faster.
KFH Automall customers benefited from free car registration free rust proofing and free thermal tinting. In addition, customers also benefited from a discount on insurance and a free mobile handset.
Commenting on this success, Mr. Khalid Rafeea, Head of Banking Group at KFH-Bahrain, stated that “KFH-Bahrain’s strategy in designing all of its products and services in a way that suits the needs and capabilities of customers was clearly demonstrated by the large customer response during the campaign”.
Throughout the promotion, KFH was offering competitive financing rates, no down payment, same day approval and up to 7 years repayment periods.
Mr. Mazen Sater Deputy Head, Consumer Banking Group, added “Customers purchasing any vehicle from KFH Automall are assured of a quick and easy documentation and approval procedure, without the need for a guarantee or salary transfer”.
Situated in Sitra, KFH Automall is the Kingdom’s largest car showroom. The KFH Automall is a unique concept in selling automobiles and Auto-finance in the Kingdom. It provides a one-stop solution, which means you choose the car you desire, get the finance of your choice and drive away. All the services that you need when purchasing a vehicle are under one roof. This innovative solution propelled KFH-Bahrain as pioneers in reshaping the way people shop for cars.
For the convenience of customers, the KFH Automall showroom is open from Saturday through Thursday, from 8 am until 8 pm, thus allowing customers the opportunity to visit at their own convenience.
***
About Kuwait Finance House, Bahrain
Kuwait Finance House, Bahrain is a leading provider of Islamic commercial and investment banking services. Established in 2002 as a wholly owned subsidiary of Kuwait Finance House (Kuwait) — an industry leader for more than 25 years — KFH-Bahrain specializes in developing and bringing to market the highest quality Islamically compliant banking and investment products, all of which are delivered by a staff of experienced and dedicated professionals with a deep understanding of the market and the customers we serve.
Source: www.albawaba.com
Bahrain ‘can lead growth of industry’
Points of Essence:
- Bahrain offers itself as a conduit to spur the global growth by riding on its knowledge, expertise and success in the Islamic finance industry.
- It is willing to initiate cooperation with governments and other financial centers to bring about this plan.
- Bahrain seems to be on the right footing considering its numerous world’s ‘firsts’.
MANAMA: Bahrain’s knowledge, expertise and success within the Islamic finance industry are there to be used as a channel to facilitate its growth globally.
That was the message from Economic Development Board (EDB) chief executive Shaikh Mohammed bin Isa Al Khalifa in a keynote address at the Euro World Islamic Banking Conference (Euro WIBC) in London yesterday.
“This may mean working with governments or in the wider context of financial centres like the City of London as its institutions develop their Islamic finance expertise. We can, and do, help,” he said.
He praised the development of the UK’s Islamic finance sector and encouraged further co-operation between the UK and Bahrain’s already mature Islamic finance industry.
“The success of the World Islamic Banking Conference, held in Bahrain for the last 15 years inspired the Euro World Islamic Banking Conference to be established, the first being this year, in London,” he said.
He acknowledged the rapid and sustained growth of the UK’s Islamic finance sector noting that there are currently over 20 banks providing Islamic financial services, more than the rest of Western Europe combined.
The City of London is home to Europe’s only stand alone Islamic institutions, including investment banks, retail banks and a takaful provider, he said.
“Bahrain is recognised as the world’s centre for Islamic finance with more Islamic finance institutions than anywhere else in the Middle East and Norther Africa region.
“Bahrain was the first to market, in 2001, with Prudential – PIRI regulations specific to the Islamic banking industry and, also in 2001, the Central Bank of Bahrain (CBB) was the first to develop and issue sukuk products.
“In 2005, Bahrain again led the field and created the first ever comprehensive regulatory framework specific to takaful and re-takaful companies.
“This year the CBB is implementing the new international regime on capital adequacy and risk management, Basel II, with specific changes for Islamic banks. This is a global first led by Bahrain,” he said.
Source: Gulf Daily News
CBB: Islamic banks warned against cloning models
Points of Essence:
- Islamic financial institutions have been warned against product copycats to better survive any economic downturns.
- Institutions have long focussed on real estate and asset finance which may not provide them a steady source of bread and butter revenue should the project driven products are not sustainable in times of difficulty.
- Central Bank of Bahrain calls for a greater diversity of business models, more diverse and stable income sources, and more rigorous risk management and stress testing techniques to assess institutions preparedness to deal with any downturn in economic activity. This is to avoid exposure to the same economic and industrial sectors.
MANAMA: The Islamic finance industry needs to develop new models and make sure it is in a position to withstand an economic slowdown, the Central Bank of Bahrain (CBB) governor warned yesterday.
Newer entrants to the industry have merely tended to copy the strategies they see being successfully pursued by their more established rivals, Rasheed Al Maraj warned delegates at the Euro World Islamic Banking Conference (Euro WIBC) in London yesterday.
“If I may say so, there is a high degree of cloning of business models,” he said.
“As a result, a very high percentage of Islamic banks have a strategy that is heavily weighted towards real estate and asset finance.
“They tend to be project-driven and do not have a steady source of bread and butter revenue to tide them over any downturns in economic activity.”
He said that asset-based business models favoured by many Islamic banks have not been tested in a downturn.
“We need to remember that a business model which looks robust in conditions of rising asset values and abundant liquidity may not be so when the economic environment changes,” he warned.
“The industry needs to respond to these challenges by developing a greater diversity of business models, more diverse and stable income sources, and more rigorous risk management and stress testing techniques to assess its preparedness to deal with any downturn in economic activity.
“As a central banker, I am inevitably preoccupied by risk, especially when it could potentially impact on a significant sector of the financial industry.”
He said the asset base of Islamic finance contrasted with that of conventional banks with their extensive loan books, overdraft and credit card facilities which provide steady revenue to cover their overheads even in today’s challenging markets.
“The cloning of business models in Islamic finance leads to financial institutions becoming exposed to the same economic and industrial sectors,” he said.
“The Islamic banking sector as a whole is highly exposed to the property sector – real estate, commercial property and construction – and as events in the advanced markets have recently reminded us, this sector can and does experience significant cycles of activity.”
He said that in spite of these challenges, the Islamic financial industry continued to offer enormous opportunities for both Muslims and non-Muslims alike.
“We at the CBB have a continuing commitment to facilitating the development of the Islamic financial services industry,” he added.
“We will continue to ensure that all financial institutions in Bahrain adhere to the very highest international standards. Where necessary we will play our part in adapting those standards to the needs of the Islamic financial services industry,” he said.
Source: Gulf Daily News
