BANKING - QATAR - Islamic finance to thrive on conventional banking ban

ISLAMIC finance has been given the boost it needed in the Gulf by a Qatari ban on conventional banks offering syariah-compliant services.

Qatar's move last month draws a line in the sand between Islamic banks and their conventional peers, which control 83 per cent of the region's banking assets.

Even before Qatar's shock decision, the Islamic finance industry was expected to grow by between 15 to 20 per cent a year, PricewaterhouseCoopers said in a report in November. (full story)

PRESENTATION - A successful 'Islamic finance'-road show

 

Thinking about launching a conventional fundraiser roadshow ?  Interested in "going Islamic", but do not know exactly what it all is about ? This is a 1-hour presentation.  Contact the webmaster. Islamicfinanceindonesia [at] gmail.com

ARTICLES - IMF - The Effects of the Global Crisis on Islamic and Conventional Banks: A Comparative Study

Summary: This paper examines the performance of Islamic banks (IBs) and conventional banks (CBs) during the recent global crisis by looking at the impact of the crisis on profitability, credit and asset growth, and external ratings in a group of countries where the two types of banks have significant market share.

Our analysis suggests that IBs have been affected differently than CBs. Factors related to IBs‘ business model helped limit the adverse impact on profitability in 2008, while weaknesses in risk management practices in some IBs led to a larger decline in profitability in 2009 compared to CBs. IBs‘ credit and asset growth performed better than did that of CBs in 2008-09, contributing to financial and economic stability. External rating agencies‘ re-assessment of IBs‘ risk was generally more favorable.