THAILAND - FINANCE - Islamic Bank's B1bn loan draws scrutiny

The Finance Ministry has launched an investigation into Islamic Bank executives who approved an unusual loan worth one billion baht to eight projects even though their collateral values were less than the amount of the loan, said a senior finance official.

The ministry set up a committee chaired by Amnuay Preemonwong, inspector-general of the Finance Ministry, and representatives from other state agencies, such as the Office of the Attorney General. (source)

THAILAND - CAPITAL MARKETS - Thai Islamic Bank Seeks Tax Clarification Before Baht Sukuk Sale

Oct. 5 (Bloomberg) -- The Islamic Bank of Thailand is awaiting clarification from government regulators on tax breaks for Shariah-compliant bonds before proceeding with the country’s first sale of baht-denominated sukuk.

“We need to know if the tax exemptions cover both land and properties,” Dheerasak Suwannayos, president of the state-owned Islamic Bank, said in an interview today in Bangkok. “We have been told by the Securities Exchange Commission that they will get back to us in a month.” (source)

THAILAND - Thailand aims for new sources at Islamic finance

REPUBLIKA.CO.ID, BANGKOK - Finding a middle way, the bankers of Thailand are now beginning to persuade the Islamic financial investors to pump money into infrastructure projects Thailand. In return, they get a foothold in the domestic market at the White Elephant sharia is almost untouched. (source)

THAILAND - Islamic Bank to sell Bt5-billion domestic bond

The Islamic Bank of Thailand plans to sell Bt5 billion of domestic sukuk and US$150 million of global sukuk, Dheerasak Suwannayos, the bank's president, said today in the Islamic Finance News Roadshow 2011 in Bangkok. (source)

THAILAND - Islamic finance eyes Thai infrastructure funding

BANGKOK, June 29 (Reuters) - The Islamic finance industry is interested in tapping Middle Eastern oil money to help fund Thai infrastructure projects, which could help it gain a foothold in a market with only a small Muslim population, bankers said on Wednesday.

The fledgling Islamic finance industry was propelled into the global spotlight in the aftermath of the financial crisis as it was seen as a more ethical, less leveraged way of banking. (source)

ASEAN - High oil prices to hand Islamic finance a temporary lifeline

(Reuters) - Strong oil prices will spark renewed interest in Islamic finance but the $1 trillion industry is unlikely to garner broad acceptance in the long term, eclipsed by the products and pricing offered by conventional banks.

With oil at over $100 a barrel, investors are expected to flock to Islamic finance in hopes of another Gulf petrodollar boom, similar to 2008 when record energy prices propelled the industry into the global spotlight.

During the last boom, the credit crisis and the collapse of Lehman Brothers and bailout of banks such as Citigroup and Bank of America reinforced the case for non-Muslim governments from France to South Korea to consider Islamic finance.(source)

THAILAND - Islamic Bank sees market potential in Upper South

The Islamic Bank of Thailand (IBank) plans to expand its financial services to the upper southern provinces to support Muslim communities affected by recent flooding, according to president Dheerasak Suwannayos.

The bank will focus on Surat Thani, Nakhon Si Thammarat, Phatthalung and Trang provinces for its business expansion, which is scheduled for the second quarter this year after the flooding eases. (full story)