INDONESIA - BANKING - CIMB offers 1st Indonesian fixed returns

www.btimes.com.my - CIMB Group Holdings Ltd, Malaysia’s second-biggest Islamic bank, is introducing Indonesia’s first Shariah-compliant fixed returns on deposits, five years after their adoption in its home market.

PT Bank CIMB Niaga Syariah, a unit of the Kuala Lumpur- based bank, started offering the accounts to lenders on June 24 and plans to introduce them for consumers, Badlisyah Abdul Ghani, the head of Islamic banking at the parent, said in a July 4 interview. Indonesia’s Islamic finance assets total 147.9 trillion rupiah (US$15.6 billion), trailing Malaysia’s RM350.4 billion (US$110 billion), partly because depositors only receive floating payments based on profits or price swings.  (source)

INDONESIA - BANKING - Islamic Commercial Banking in Indonesia and Malaysia

www.livetradingnews.com - CIMB Islamic, HSBC Amanah and OCBC Al-Amin said the biggest challenge to the growth of Islamic commercial banking is a lack of awareness and the need to explain the advantages of Shariah-compliant financing from an economic perspective.
Islamic trade financing isn’t competitive, Mohamad Nedal, former secretary-general of the Accounting & Auditing Organization for Islamic Financial Institutions in Bahrain, said in an interview last year.
“Having a multinational corporation convert to Islamic financing would need a majority of management to believe in Islam,” said Fares Mourad, head of Islamic finance at Bank Sarasin & CIE, the Swiss wealth manager controlled by Rabobank Groep, said. (source)

SINGAPORE - FINANCE - CIMB Singapore aims to approve S$100m Islamic loans for SMEs

www.thesundaily.com - KUALA LUMPUR (March 2, 2012): CIMB Bank, which started its Islamic commercial banking operations in Singapore last year, aims to approve S$100 million this year for the small and medium enterprises (SMEs) in the republic.
"We are targeting about S$100 million for SME financing this year. At the moment, we already have about S$30 million on our balance sheet with a healthy pipeline for the full year.
"The take-up rate of Islamic financing for SMEs has been encouraging although it is very early days for the industry in Singapore," said Badlisyah Abdul Ghani, CIMB Group's head of group Islamic banking division.
He said the bank's Islamic commercial banking operation has been growing in Singapore although the Muslim community makes up less than half of the population. (source)

WORLD - FUNDAMENTAL DEBATE - Debate rages over Western role in Islamic finance

www.lse.co.uk - LONDON, Feb 23 (Reuters) - A controversial plan by Goldman Sachs to issue an Islamic bond has ignited a wider debate on whether conventional banks in the West should be allowed to engage in Islamic finance.

At a major conference of Islamic scholars and bankers in London this week, much of the public and private discussion was devoted to whether growing Western interest in Islamic finance could damage the industry by compromising its religious principles. (source) (see also)

WORLD - BANKING - IFSB : Islamic banks urged to develop more instruments to manage risks

ISLAMIC financial institutions (IFIs) should develop more products for them to better manage risks, in light of the recent financial crisis that has affected public image and trust in the global banking sector, experts said here yesterday.

The secretary-general of Islamic Financial Services Board (IFSB) said that Islamic banks were more conservative than their mainstream counterparts and generally had the capital required under the new Basel III framework, which began implementation last year. (source)

INDONESIA - BANKING - CIMB Group To Introduce New Islamic Products In Singapore And Indonesia

KUALA LUMPUR, Dec 28 (Bernama) -- CIMB Group Holdings Bhd plans to introduce new Islamic products in Indonesia and Singapore next year through its Islamic units in the two countries.

The bank is looking at introducing Islamic wealth management products and services as well as basic consumer banking products such as deposits for the two countries. (source)

INDONESIA - VIDEO - Islamic Bonds, Sukuk, Malaysia, Indonesia, Nov. 1

Nov. 11 (Bloomberg) -- Badlisyah Abdul Ghani, chief executive officer at Kuala Lumpur-based CIMB Islamic Bank Bhd., talks about the outlook for Islamic bond sales. CIMB Group is poised to overtake Malayan Banking Bhd. as the lead arranger for Islamic bonds this year after helping manage Malaysia’s second-biggest offering in 2011. Badlisyah spoke from Kuala Lumpur on Nov. 9 with Bloomberg Television's Haslinda Amin. (Source: Bloomberg) (source)

WORLD - FINANCE - Give Islamic benchmark rate a chance: Bankers

The launching of the Islamic Interbank Benchmark Rate (IIBR) by Thomson Reuters in Bahrain last week is the latest manifestation of how the technical architecture of the global Islamic financial industry is maturing. To many the pace of maturity remains frustratingly slow, especially in the Middle East and North Africa, while Asia is galloping ahead, which has resulted in a lob-sided West Asia and East Asia fault line. (source)

INDONESIA - CAPITAL MARKETS - Badlisyah Sees Indonesia Taking Lead in Sukuk Issuances

Nov. 11 (Bloomberg) -- Badlisyah Abdul Ghani, chief executive officer at Kuala Lumpur-based CIMB Islamic Bank Bhd., talks about the outlook for Islamic bond sales. CIMB Group is poised to overtake Malayan Banking Bhd. as the lead arranger for Islamic bonds this year after helping manage Malaysia's second-biggest offering in 2011. Badlisyah spoke from Kuala Lumpur on Nov. 9 with Bloomberg Television's Haslinda Amin. (Source: Bloomberg) (Bloomberg) (source) - movie clip

MALAYSIA - BANKING - CIMB Group launches Shariah-compliant securities services

asianbankingandfinance.net - It will comprise of four business units namely, Trustee Services and Products, Custody, Corporate Agency, and Fund Accounting. Speaking at the launch of the services, Badlisyah Abdul Ghani, Executive Director and Chief Executive Officer, CIMB Islamic said that in view of the burgeoning increase in global Islamic assets, there is an urgent need for the establishment of an integrated Islamic securities services platform. “Research has revealed that overall Islamic asset management industry has grown at an astronomical rate of 20% per annum, bringing it to amount to USD292 billion in 2009. The recent shift from traditional investments [such as equities and real estate funds] to investments in new alternative asset classes [such as shariah-compliant exchange traded funds and hedge funds] further evidences critical untapped opportunities for local and international service providers,” explained Badlisyah. Badlisyah revealed that the Group’s trustee services have garnered over 20 years of experience in numerous types of landmark investment schemes and customised trust solutions, all of which have earned them the credibility of being industry experts. 

Source : http://asianbankingandfinance.net/islamic-banking/more-news/cimb-group-launches-shariah-compliant-securities-services- Oct 18, 2011

INDONESIA - FINANCE - CIMB Niaga’s new Islamic product

KUALA LUMPUR: PT Bank CIMB Niaga Tbk (CIMB Niaga), 97%-owned by the CIMB Group, plans to roll out a new syariah product, Commodity Murabahah deposit, possibly by end of this year, said CIMB group’s head of group Islamic banking division, Badlisyah Abdul Ghani.

Badlisyah, who is also chief executive officer of CIMB Islamic Bank Bhd, said the product, to be offered under CIMB Niaga Shariah, the group’s Islamic banking sub-brand in Indonesia, was awaiting approvals from relevant regulators in Indonesia. (source)

SINGAPORE - Islamic finance to play a pivotal role in trade and investment flows (WIBC)

HE Lim Hng Kiang, Minister for Trade and Industry Republic of Singapore & Deputy Chairman Monetary Authority of Singapore delivering the keynote address at WIBC Asia 2011

HE Lim Hng Kiang, Minister for Trade and Industry Republic of Singapore & Deputy Chairman Monetary Authority of Singapore

The 2nd Annual World Islamic Banking Conference: Asia Summit (WIBC Asia 2011) opened today at the Pan Pacific Hotel, Singapore. Though Islamic banking assets have grown significantly over the past few years, they still only represent less than one per cent of total global banking assets – with more than 50 per cent concentration in the Middle East region.

The two-day WIBC Asia event, held under the official support of the Monetary Authority of Singapore, kicked off today with an inaugural address by HE Lim Hng Kiang, Minister for Trade and Industry Republic of Singapore & Deputy Chairman Monetary Authority of Singapore. This was followed by an opening keynote session which featured HE Mohd Rosli Sabtu, Managing Director of Autoriti Monetari Brunei Darussalam (AMBD); HE Halim Alamsyah, Deputy Governor of Bank Indonesia; and Tan Sri Zarinah Anwar, Chairman of Securities Commission Malaysia. (source)

REPORT - ISLAMIC FINANCE ASIA (April edition) Indonesia: Prospects Still Abundant

As Malaysia continues to pursue its ambition of becoming the leading global hub for Islamic finance, Indonesia is working towards its own goal of international recognition in the industry. RAPHAEL WONG looks at the Indonesian Islamic banking sector through the eyes of two Malaysian banks that have assimilated into the market. (full story)

BANKING - Makaysia : The Islamic financial oasis - Maybank and CIMB Islamic eye Indonesia - Bank Islam hesitant but interested

KUCHING: With many innovations happening in the nation’s Islamic financial sector, it is just natural for the industry to attract many foreign players into the market.

With the launch of Bursa Suq Al Sila on Bursa Malaysia in August 2009, the nation established the world’s first syariah-based commodity trading platform – spurring further foreign interest in the country’s Islamic financial industry.

However, the boost was triggered even earlier than that, initiated by the release of the Financial Sector Masterplan (FSMP) in 2001. Thenceforth, the sector experienced a rapid revolution in foreign participation, which saw the issuance of dedicated Islamic banking licences to three foreign groups – led by Kuwait Finance House Malaysia Bhd (KFH Malaysia). (source)

MALAYSIA - BANKING - Abundant opportunities in 2011

ALL Islamic finance sub-sectors are expected to continue strong growth next year, riding on the economic momentum driven by the government's medium- and long-term economic plans.

CIMB Islamic chief executive officer (CEO) Badlisyah Abdul Ghani said the outlook for the global and local Islamic finance is bright.

He said globally, the industry is expected to benefit from the strong economic recovery in Asia, which is where Islamic finance is based and centred.

MALAYSIA - FINANCE - 2010 Stronger global Islamic finance hub status

THE year 2010 saw the expansion of Islamic finance in Malaysia as the Islamic banking, takaful and Islamic capital market grew, in line with the economic recovery.

During the year, the country strengthened its position as a global hub for Islamic finance, supported by the Malaysia International Islamic Financial Centre (MIFC) initiative.

The highlight of the achievements in the local Islamic finance sector last year (2010) has to be the recognition given to Bank Negara Governor Tan Sri Dr Zeti Akhtar Aziz locally and abroad.

Zeti was the first woman recipient, in 24 years, of the national-level Ma'al Hijrah award. She was recognised for helping pull the country out of the 1998 financial crisis, making Malaysia a financial hub and implementing Islamic banking.

CAPITAL MARKETS - Shariah-Compliant Hedging Derivatives Start in Malaysia: Islamic Finance

Standard Chartered Plc and Bank Islam Malaysia Bhd. plan to offer Shariah-compliant derivatives in Malaysia that will allow investors to hedge against interest rates and commodity prices.

Standard Chartered, the U.K. bank that earns most of its profit from emerging markets, will begin selling contracts in the first quarter that provide protection from fluctuations in the cost of items such as rice and oil, according to an e-mailed reply to questions yesterday. Bank Islam Malaysia, the country’s oldest Islamic lender, will offer swaps that allow two parties to exchange different forms of payments from an underlying asset.

SUKUK - Sovereign Islamic bonds from Asia to the Persian Gulf are beating returns on corporate sukuk for the first time in three months as accelerating economic growth and rising oil revenue shore up state finances

Sovereign Islamic bonds from Asia to the Persian Gulf are beating returns on corporate sukuk for the first time in three months as accelerating economic growth and rising oil revenue shore up state finances.

SUKUK - IDB to list US$3.5bil sukuk bonds in KL and London

KUALA LUMPUR: The Islamic Development Bank (IDB) will dual list US$3.5bil of its sukuk bonds in Kuala Lumpur and London by the year-end.

Of this amount, US$1.1bil has already been issued to investors. About US$1bil will be issued by year end, in tranches of five, seven and 10 years.

Finance vice president Dr Abdul Aziz Al-Hinai said one of IDB’s responsibilities was to help members of the Organisation of Islamic Conference grow and develop.