Islamic Financial Institutions Awards 2010

By Neville, Laurence | Global Finance, June 2010 | Go to article overview

Islamic Financial Institutions Awards 2010


Neville, Laurence, Global Finance


Islamic financial institutions were not immune to the turmoil of the past two years, but their strict ethical code helped them prosper in many areas where others foundered.

The world of Islamic finance has not been immune from the travails of the international financial system. One of the biggest headlines of the past year was the near collapse of real estate firm Dubai World and its rescue by neighboring emirate Abu Dhabi. The event vividly demonstrated that Islamic finance was just as susceptible to excessive leverage, speculative real estate development and lack of financial transparency as conventional financial markets.

Nevertheless, by general consensus Islamic finance had a good financial crisis. The global market for Islamic financial services in 2009, as measured by shariahcornpliant assets, is estimated to have been broadly flat on 2008's level of $951 billion, according to not-for-profit industry group International Financial Services London (IFSL). However, that compares to a conventional financial system that saw assets fall sharply.

Moreover, the global Islamic bond or sukuk market bounced back strongly in 2009. Issuance hit S20 billion last year - still some way off the $34 billion raised in 2007 but 30% higher than the $15 billion raised in 2008, according to IFSL figures. Duncan McKenzie, IFSLs director of economics, notes that the financing problems at Dubai World have created uncertainty and "brought concerns about settlement of sukuk defaults into focus."

However, McKenzie adds, "Quality issuers of sukuk are continuing to attract demand from both Islamic and non-traditional investors." The scores ot Islamic and non-Islamic investors that flocked to Indonesia's pioneering $650 million sukuk ijarah (lease finance deal) in April 2(XW are a testament to the perceived long-term viability of the market. Other aspects of Islamic investment banking have also enjoyed a boost recently. The launch on March 1. 20 K), of the ISDA/IIFM (International Swaps and Derivatives Association/International Islamic Financial Market) tahawwut (hedging) master agreement is expected to significantly accelerate the growth and development of the Islamic derivatives market.

In the broader banking world, Islamic banking continues to expand its reach. Germany's first Islamic Bank, a unit of Kuwait Finance House's Turkish operation, is set to open shortly in Mannheim. Given the 4 million Muslims that live in Germany, there is clearly significant potential for the market. Similarly, France, which also has 4 million Muslims, will get its first shariahcompliant bank when a joint venture between France's Banque Populaire and Caisse d'Epargne Group and Qatar Islamic Bank begins operations before the end of the year.

The third annual Global Finance Best Islamic Financial Institutions Awards honor the leading institutions in the regions, countries and product areas in which Islamic banking has an established or growing presence. The awards are based on extensive consultations with bankers, analysts and industry experts but ultimately are the decision of Global Finance's editors. The criteria incorporate a range of factors, including growth in assets, profitability, geographic reach, strategic relationships, new business development, innovation in products and the banks' financial stability.

Overall Awards

Best Sukuk Bank

CIMB Islamic

CIMB Islamic is the undisputed leader in Islamic bonds, with a global market share of almost one-fifth, resulting from 32 bond issues it managed, double the total of second-place HSBC, according to information provider Dealogic. It is CIMB Islamic s deal count that holds the key to its success: Its depth of experience in sukuk is equaled by its breadth. While most banks in the business continue to focus primarily on their home markets, CIMB Islamic was a manager on issues such as Saudi Arabia's Islamic Development Bank as well as major transactions from Malaysian issuers such as Petronas and Cagamas. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Islamic Financial Institutions Awards 2010
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Author Advanced search

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.