Mr Volcker : Voice Of An Economist

The world economy, feels actually the pain of risks, that financial crisis fever still alive in world economy’s body, what seems a propagating risk-flu heavier and not less spreading slower than swine-flu.

It’s  a big time, for voices like Mr Volker to be heard, before it is too late, since there is a crisis, a solution is needed, and the question is how long the world economy can survive with this fiancial fever, before the catastrophic disaster.

Making banks less risky, is the first step forward, donating blood to the economy,  the fact that sharia compliant solutions applied by islamic banks risk-free, or at least sharing-risk-profit, still widely far from being affected by this worldwide financial fever, and risk-flu, All add a great value to Mr Volker suggestions to the economy of market and the administration of obama.

“Extensive participation in the impersonal, transaction-oriented capital market does not seem to me an intrinsic part of commercial banking.”

- Paul Volcker

Kuwaiti government sets up Islamic bank

A new Islamic bank in Kuwait is to be 76% owned by the country’s 1.1 million citizens.

The remaining 24% of Warba Bank will be owned by the state-run Kuwait Investment Authority, the country’s sovereign wealth fund.

The Kuwaiti government has given the bank a capital of 100 million dinars ($350 million), making the stake owned by the public worth $265 million, or $240 per citizen.

Warba Bank is the fourth Islamic bank in the oil-rich emirate.

Other Islamic banks in the country include Kuwait Finance House, one of the world’s largest Islamic banks, Boubyan Bank, and Kuwait International Bank.

Islamic banks comply with Sharia law, which prohibits the payment of interest fees in exchange for the lending of money.

Source : Financemarkets.co.uk

Al Hilal plans to open two branches in Kazakhstan

By :  Reuters

Abu Dhabi’s government-owned Al Hilal Bank plans to open Kazakhstan’s first Islamic bank in December, starting with two branches, and wants to expand to other former Soviet Union states, its CEO said.

The lender is on track to break even by end 2009 and will be profitable in 2010, said Mohamed Berro.

Al Hilal will headquarter the new bank called Al Hilal Islamic Bank in Almaty, with an initial capital of about Dh100 million ($27m).

Finbank to Open Islamic Bank in Sokoto

The Group Managing Director/Chief Executive Officer of FinBank Nigeria Plc, Mrs Suzzane Iroche, weekend said the bank will open its Islamic Banking Division in Sokoto State in the next three months.

She made the disclosure at the launch of Buses Loan Scheme jointly financed by the Sokoto State government and FinBank Nigeria Plc, pointing out that it will be a huge success to the bank and the State.

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She said: “We held our last Annual General Meeting here in March and our Islamic Banking Division is taking off from the State soon. This is beside our huge presence in retail and corporate banking services to the State through our business offices located in the seat of the Caliphate”. According to her, the presence of Islamic bank in the state will meet the desire of their customers who demand for Islamic banking.

Qatar Islamic Bank to raise QR3.5bn for European investments

Qatari Diar Real Estate Investment Company (Qatari Diar), the leading Qatari real estate developer and investment firm, has appointed Qatar Islamic Bank (QIB), the leading Islamic bank in Qatar, as Initial Mandated Lead Arranger and Bookrunner to raise a five year QR3.5bn Sharia’-compliant syndicated facility to finance European investments.

This is the first time that a local Qatari bank has been appointed as the sole MLA and Bookrunner for such a high-profile transaction. The Islamic facility will be subject to the final regulatory approvals.

First Islamic bank set to open in Kochi

KOCHI: India’s first bank that will only deal in financial products compliant with Islamic law will open in Kochi by next year. The first project that the government is looking at the bank to finance is the 80-billion-rupee north-south high-speed corridor.

The Kerala State Industrial Development Corporation (KSIDC) has initiated the incorporation of the company with an authorized capital of Rs.5 billion. The company is expected to invest mainly in infrastructure projects and pay dividends to depositors, officials said. Besides KSIDC, which holds an 11 percent stake in the company, p. Mohammed Ali of Oman’s Galfar Group, C.K. Menon of Doha-based Behzad Group, M.A. Yusuf Ali who heads LuLu supermarket chain in the Gulf and Azad Moopen of Moopen’s Group are the company’s major promoters.