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Posts Tagged ‘Product Innovation

Gulfnews: Dubai Islamic Bank launches new business banking solution

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Points of Essence:

  • Dubai Islamic Bank recently rolled out its new business banking account known as Al Islami Banking Accounts. The product comes in 3 different packages, Al Islami Business Account, Al Islami Business Account Plus and Al Islami Business Account Premium, each designed to suit the requirements of different types of business customers and different growth plans. The account is now available at all the Bank’s branches which features may be seen here. Gulf News reported.

Staff Report
Published: November 08, 2008, 22:50

Dubai: Dubai Islamic Bank (DIB) has launched Al Islami Business Accounts, a new product in its business banking portfolio that offers banking convenience and competitive advantages to business customers.

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Written by Suapi Shaffaii

November 9, 2008 at 7:19 pm

Sharjah Islamic Bank launches its latest ATM machine on Lake Khalid in Sharjah

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Points of Essence:

  • Sharjah Islamic Bank is sensitive to its customers’ specific banking needs. The bank has recently launched a new ATM which is designed with drivers and pedestrians in mind. Previously in April this year, the bank launched ATM for its disabled customers.

Sharjah Islamic Bank has recently launched a new ATM, designed to serve both drivers and pedestrians. Located on Lake Khalid in Sharjah, near the Holiday Inn International Hotel; the ATM will be situated near the Holiday Inn Hotel and is the latest device to join the Bank’s growing network of ATMs, which is currently being expanded throughout the UAE.

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Written by Suapi Shaffaii

November 2, 2008 at 12:09 am

CBB: Islamic banks warned against cloning models

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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

Written by Suapi Shaffaii

July 9, 2008 at 8:33 am