Monday, 05 January 2009
The Standard & Poor’s credit rating agency, for the 7th consecutive year, rated the future outlook of the Islamic Development Bank Group as “stable” in its annual report on international finance institutions issued during December 2008. The Standard & Poor’s credit rating agency, for the 7th consecutive year, rated the future outlook of the Islamic Development Bank Group as “stable” in its annual report on international finance institutions issued during December 2008.
The agency awarded IDB Group with its highest credit rating of (AAA) for the long term and (A-1+) for the short term, reporting that IDB’s “capital position is extremely strong and its liquidity ample.” According to the report released by Standard & Poor’s, the ratings on IDB were based on IDB’s strong capitalization, strong liquidity, a development-related asset portfolio that has performed well in relation to its large pool of borrowers, and an expected continued preferred creditor treatment.
Currently, IDB has successfully received the highest credit ratings from all three leading rating agencies in the world – Moody’s, Fitch, and now, for its seventh consecutive year, Standard & Poor’s. The strong ratings allow IDB to mobilize resources from international financial markets at low costs. President of IDB Group Dr. Ahmad Mohamed Ali reiterated that the high ratings of IDB for its seventh consecutive year is due mainly to the robust financial position of the Bank as well as the strong support of its member countries. The European Parliament and the Basel Committee on Banking Supervision have also confirmed IDB’s place in the list of zero-risk development institutions.
The top rating by Standard & Poor’s has had an enormous effect in consolidating confidence in IDB and its role in promoting the development process in member countries. The Standard & Poor’s report stated that IDB’s net income jumped by 32% during 1428H to SR 164 million from SR 123 million one year earlier, “mainly due to increased income from operation assets.”
Thursday, January 15, 2009
BNI Syariah: To Launch Credit Card
Kamis, 15 Januari 2009
Jakarta (15/1) The shariah division head of BNI Ismi Kushartanto stated that BNI syariah will launch its new product, shariah credit card, there is other shariah credit card it called Dirham Card from Bank Danamon syariah.
“we are trying to improve our product and praise to Allah that in 2009 we will be able to launch our shariah credit card,” said Ismi Kushartato to pkesinteraktif.com. Aside from the sophisticated Technology, the credit card of BNI syariah comes with health and life insurance for the card holder. In line with BNI syariah business expansion, in 2009, Ismi Kushartanto set target to attract 10.000 BNI syariah credit card holders, which focus on middle and high class segments.
“There are three types of BNI syariah credit card, platinum, gold and regular, depend on the needs of each customer,” said Ismi. It is expected that with BNI syariah credit card, the community could fulfill their basic needs by using the benefit of shariah credit card.
(Agus Y/ Nibra www.pkesinteraktif.com)
Jakarta (15/1) The shariah division head of BNI Ismi Kushartanto stated that BNI syariah will launch its new product, shariah credit card, there is other shariah credit card it called Dirham Card from Bank Danamon syariah.
“we are trying to improve our product and praise to Allah that in 2009 we will be able to launch our shariah credit card,” said Ismi Kushartato to pkesinteraktif.com. Aside from the sophisticated Technology, the credit card of BNI syariah comes with health and life insurance for the card holder. In line with BNI syariah business expansion, in 2009, Ismi Kushartanto set target to attract 10.000 BNI syariah credit card holders, which focus on middle and high class segments.
“There are three types of BNI syariah credit card, platinum, gold and regular, depend on the needs of each customer,” said Ismi. It is expected that with BNI syariah credit card, the community could fulfill their basic needs by using the benefit of shariah credit card.
(Agus Y/ Nibra www.pkesinteraktif.com)
Wednesday, December 3, 2008
DEFINITION
Ijara
Ijara is a form of leasing. It involves a contract where the bank buys and then leases an item – perhaps a consumer durable, for example – to a customer for a specified rental over a specific period. The duration of the lease, as well as the basis for rental, are set and agreed in advance. Islamic Bank of Britain retains ownership of the item throughout the arrangement and takes back the item at the end.
Ijara-wa-iktana
Ijara-wa-iktana is similar to Ijara, except that included in the contract is a promise from the customer to buy the equipment at the end of the lease period, at a pre-agreed price. Rentals paid during the period of the lease constitute part of the purchase price. Often, as a result, the final sale will be for a token sum.
Ijara with diminishing Musharaka
The principle of Ijara with diminishing Musharaka can be used for home-buying services. Diminishing Musharaka means that we reduce our equity in an asset with any additional capital payment you make, over and above your rental payments. Your ownership in the asset increases and ours decreases by a similar amount each time you make an additional capital payment. Ultimately, we transfer ownership of the asset entirely over to you.
Mudaraba
Mudaraba refers to an investment on your behalf by a more skilled person. It takes the form of a contract between two parties, one who provides the funds and the other who provides the expertise and who agree to the division of any profits made in advance. In other words, Islamic Bank of Britain would make Sharia’a compliant investments and share the profits with the customer, in effect charging for the time and effort. If no profit is made, the loss is borne by the customer and Islamic Bank of Britain takes no fee.
Mudarib
In a Mudaraba contract, the expert who manages the investment is known as a Mudarib.
MurabahaMurabaha is a contract for purchase and resale and allows the customer to make purchases without having to take out a loan and pay interest. Islamic Bank of Britain purchases the goods for the customer, and re-sells them to the customer on a deferred basis, adding an agreed profit margin. The customer then pays the sale price for the goods over instalments, effectively obtaining credit without paying interest.
Musharaka
Musharaka means partnership. It involves you placing your capital with another person and both sharing the risk and reward. The difference between Musharaka arrangements and normal banking is that you can set any kind of profit sharing ratio, but losses must be proportionate to the amount invested.
Qard
A Qard is a loan, free of profit. We use this arrangement for our Current Accounts. In essence, it means that your Current Account is a loan to the bank, which is used by the bank for investment and other purposes. Obviously it has to be paid back to you, in full, on demand.
RibaRiba means interest, which is prohibited in Islamic law. Any risk-free or guaranteed interest on a loan is considered to be usury.
Wakala
Wakala is an agency contract, which usually includes in its terms a fee for the expertise of the agent. We may use it for our large Deposit accounts: you own the capital invested, you appoint us as your agent and pay a fee for our expertise.
www.islamic-bank.com
Ijara is a form of leasing. It involves a contract where the bank buys and then leases an item – perhaps a consumer durable, for example – to a customer for a specified rental over a specific period. The duration of the lease, as well as the basis for rental, are set and agreed in advance. Islamic Bank of Britain retains ownership of the item throughout the arrangement and takes back the item at the end.
Ijara-wa-iktana
Ijara-wa-iktana is similar to Ijara, except that included in the contract is a promise from the customer to buy the equipment at the end of the lease period, at a pre-agreed price. Rentals paid during the period of the lease constitute part of the purchase price. Often, as a result, the final sale will be for a token sum.
Ijara with diminishing Musharaka
The principle of Ijara with diminishing Musharaka can be used for home-buying services. Diminishing Musharaka means that we reduce our equity in an asset with any additional capital payment you make, over and above your rental payments. Your ownership in the asset increases and ours decreases by a similar amount each time you make an additional capital payment. Ultimately, we transfer ownership of the asset entirely over to you.
Mudaraba
Mudaraba refers to an investment on your behalf by a more skilled person. It takes the form of a contract between two parties, one who provides the funds and the other who provides the expertise and who agree to the division of any profits made in advance. In other words, Islamic Bank of Britain would make Sharia’a compliant investments and share the profits with the customer, in effect charging for the time and effort. If no profit is made, the loss is borne by the customer and Islamic Bank of Britain takes no fee.
Mudarib
In a Mudaraba contract, the expert who manages the investment is known as a Mudarib.
MurabahaMurabaha is a contract for purchase and resale and allows the customer to make purchases without having to take out a loan and pay interest. Islamic Bank of Britain purchases the goods for the customer, and re-sells them to the customer on a deferred basis, adding an agreed profit margin. The customer then pays the sale price for the goods over instalments, effectively obtaining credit without paying interest.
Musharaka
Musharaka means partnership. It involves you placing your capital with another person and both sharing the risk and reward. The difference between Musharaka arrangements and normal banking is that you can set any kind of profit sharing ratio, but losses must be proportionate to the amount invested.
Qard
A Qard is a loan, free of profit. We use this arrangement for our Current Accounts. In essence, it means that your Current Account is a loan to the bank, which is used by the bank for investment and other purposes. Obviously it has to be paid back to you, in full, on demand.
RibaRiba means interest, which is prohibited in Islamic law. Any risk-free or guaranteed interest on a loan is considered to be usury.
Wakala
Wakala is an agency contract, which usually includes in its terms a fee for the expertise of the agent. We may use it for our large Deposit accounts: you own the capital invested, you appoint us as your agent and pay a fee for our expertise.
www.islamic-bank.com
Monday, November 24, 2008
Islamic Financial Institution is Not Ready with Net Income Profit Sharing Concept
Senin, 17 November 2008
Jakarta, 17/11. Islamic financial institutions (IFI's) in Indonesia are not ready with the concept of net profit sharing ratio of their shariah products based on the profit sharing principle. At the moment, the profit sharing ratio of IFI's in Indonesia is still using the concept of revenue sharing, or gross profit income, as explained by Hanawijaya, the Director of Bank Syariah Mandiri, at the luncheon of Annual meeting of the Nantional Shariah Board, last Saturday, November 15, at Taman Impian Jaya Ancol Jakarta.
The National Shariah Board has been recommended that IFI's should apply the net income profit sharing instead of the gross profit.
In respond to the National Shariah Board recommendation, Hana said that if it is become an obligatory to apply the net income profit sharing for IFI's , we are not ready since we are still lacking of the human capital and ICT. Therefore, he recommended that there is a necessary to adjust the infrastructure in creating the new system of IFI.
On the other hands, Hana wished that the collaboration between the National Shariah Board and the Islamic Bankers could be improved, and Hana hopes that the National Shariah Board could continuously monitoring the activity of Islamic bankers to ensure that IFI operation is shariah Compliant.
([hsn/Nibra www.pkesinteraktif.com]
Jakarta, 17/11. Islamic financial institutions (IFI's) in Indonesia are not ready with the concept of net profit sharing ratio of their shariah products based on the profit sharing principle. At the moment, the profit sharing ratio of IFI's in Indonesia is still using the concept of revenue sharing, or gross profit income, as explained by Hanawijaya, the Director of Bank Syariah Mandiri, at the luncheon of Annual meeting of the Nantional Shariah Board, last Saturday, November 15, at Taman Impian Jaya Ancol Jakarta.
The National Shariah Board has been recommended that IFI's should apply the net income profit sharing instead of the gross profit.
In respond to the National Shariah Board recommendation, Hana said that if it is become an obligatory to apply the net income profit sharing for IFI's , we are not ready since we are still lacking of the human capital and ICT. Therefore, he recommended that there is a necessary to adjust the infrastructure in creating the new system of IFI.
On the other hands, Hana wished that the collaboration between the National Shariah Board and the Islamic Bankers could be improved, and Hana hopes that the National Shariah Board could continuously monitoring the activity of Islamic bankers to ensure that IFI operation is shariah Compliant.
([hsn/Nibra www.pkesinteraktif.com]
BRI Syariah to become full-fledged Islamic Bank
Kamis, 21 Agustus 2008
Jakarta (21/8). Islamic Bank will develop and growth in this country, apparently the Islamic commercial unit of BRI will become a full-fledged Islamic Bank, this year. There will a transformation of the 3 main Pillars which will be the leading edge for the BRI Syariah spin off.
Eko BambangThe above statement came from Division Head of BRI Syariah, Eko Bambang Suharno. The three main pillars are: Information and Technology, company’s Policy and Human Capital.
The Information and Technology enhancement will stress on the on-line networking system in all branches, including the Islamic windows, which BRI Syariah customers could use BRI conventional system of ATM. "When the spin of process is done, BRI Syariah will work on developing the IT network quality, to create value added," said Eko Bambang.
There will be some improvement in all branches in regard to the system of saving and financing services, with a better management of customer database.
For the company’s policy BRI Syariah will provide its own policy of long term business projection, in determining fund allocation to the potential sectors to increase company’s growth.
" For the Human capital, BRI Syariah will keep on develop its human capital competency, quality, and quantity by internal or external recruitment process” explained Eko.
(Nola/Nibra, www.pkesinteraktif.com)
Jakarta (21/8). Islamic Bank will develop and growth in this country, apparently the Islamic commercial unit of BRI will become a full-fledged Islamic Bank, this year. There will a transformation of the 3 main Pillars which will be the leading edge for the BRI Syariah spin off.
Eko BambangThe above statement came from Division Head of BRI Syariah, Eko Bambang Suharno. The three main pillars are: Information and Technology, company’s Policy and Human Capital.
The Information and Technology enhancement will stress on the on-line networking system in all branches, including the Islamic windows, which BRI Syariah customers could use BRI conventional system of ATM. "When the spin of process is done, BRI Syariah will work on developing the IT network quality, to create value added," said Eko Bambang.
There will be some improvement in all branches in regard to the system of saving and financing services, with a better management of customer database.
For the company’s policy BRI Syariah will provide its own policy of long term business projection, in determining fund allocation to the potential sectors to increase company’s growth.
" For the Human capital, BRI Syariah will keep on develop its human capital competency, quality, and quantity by internal or external recruitment process” explained Eko.
(Nola/Nibra, www.pkesinteraktif.com)
Monday, November 17, 2008
USD 196 million agreement between IDB and the Tunisian Company for Electricity and Gas.
IDB - News - 18 Nov 2008
The Islamic Development Bank Group will sign a USD 196 million (123 million Euro) agreement on Friday, 14 November 2008 with the Tunisian Company for Electricity and Gas (acting on behalf of the government of Tunisia). The project financing is described as the largest financial contribution made by the IDB Group to Tunisia to date, further confirming the remarks made by IDB President Dr. Ahmad Mohamed Ali that in the midst of the current international financial crisis, IDB Group remains unaffected by the crisis and is “financially strong and despite the current market conditions, it will be able to meet its commitment to member countries and conduct its normal operations.”
The agreement will deal with the extension of the Ferian and Thyna Power Plant in Tunisia and includes the financing of works related to the procurement and installation of two gas turbine units, including studies, civil works, and commission as well as supervision. IDB Group President Dr. Ahmad Mohamed Ali, Tunisian Minister for Development and International Cooperation Mohamed Nouri Jouini, and President of the Tunisian Company for Electricity and Gas Osman Ben Arfa will sign the financing agreement.
The proposed project joins an extensive list of 55 projects that the IDB Group launched in Tunisia since 1977 amounting to 534 million Islamic Dinars (or USD 759.8 million). Among the IDB Group modes of financing utilized in Tunisia include equity, loans, istisna'a (manufacturing contracts), and technical assistance (grants) targeted towards electricity, water, agriculture, social services, industrial and banking sectors. The cooperation between the Islamic Development Bank Group and the Republic of Tunisia is a unique model of human development for economic development beyond just direct technical cooperation. Through its partnership with Tunisia, IDB has carried out humanitarian operations such as restoring eyesight to more than 5000 blind men, women and children in more than a dozen African countries.
Tunisia is a beneficiary of the IDB’s Merit Scholarship Programme, by which, IDB provided scholarships to 20 Tunisian science and technology researchers at the doctoral and post-doctoral level to study at reputed institutions in the world. Also, Tunisia has supported the IDB’s Scholarship Programme for Muslim Communities in Non-Member Countries and the M.Sc. Scholarship Programme for LDMCs by helping to place 136 students from French speaking African countries under the Scholarship Programme for Muslim Communities and 19 under the M.Sc. Programme in various universities in Tunisia.
The Islamic Development Bank Group will sign a USD 196 million (123 million Euro) agreement on Friday, 14 November 2008 with the Tunisian Company for Electricity and Gas (acting on behalf of the government of Tunisia). The project financing is described as the largest financial contribution made by the IDB Group to Tunisia to date, further confirming the remarks made by IDB President Dr. Ahmad Mohamed Ali that in the midst of the current international financial crisis, IDB Group remains unaffected by the crisis and is “financially strong and despite the current market conditions, it will be able to meet its commitment to member countries and conduct its normal operations.”
The agreement will deal with the extension of the Ferian and Thyna Power Plant in Tunisia and includes the financing of works related to the procurement and installation of two gas turbine units, including studies, civil works, and commission as well as supervision. IDB Group President Dr. Ahmad Mohamed Ali, Tunisian Minister for Development and International Cooperation Mohamed Nouri Jouini, and President of the Tunisian Company for Electricity and Gas Osman Ben Arfa will sign the financing agreement.
The proposed project joins an extensive list of 55 projects that the IDB Group launched in Tunisia since 1977 amounting to 534 million Islamic Dinars (or USD 759.8 million). Among the IDB Group modes of financing utilized in Tunisia include equity, loans, istisna'a (manufacturing contracts), and technical assistance (grants) targeted towards electricity, water, agriculture, social services, industrial and banking sectors. The cooperation between the Islamic Development Bank Group and the Republic of Tunisia is a unique model of human development for economic development beyond just direct technical cooperation. Through its partnership with Tunisia, IDB has carried out humanitarian operations such as restoring eyesight to more than 5000 blind men, women and children in more than a dozen African countries.
Tunisia is a beneficiary of the IDB’s Merit Scholarship Programme, by which, IDB provided scholarships to 20 Tunisian science and technology researchers at the doctoral and post-doctoral level to study at reputed institutions in the world. Also, Tunisia has supported the IDB’s Scholarship Programme for Muslim Communities in Non-Member Countries and the M.Sc. Scholarship Programme for LDMCs by helping to place 136 students from French speaking African countries under the Scholarship Programme for Muslim Communities and 19 under the M.Sc. Programme in various universities in Tunisia.
Wednesday, November 12, 2008
BCA definitely will establish full-fledged Islamic Bank
Kamis, 30 Oktober 2008
Jakarta (30/10) Bank Central Asia (BCA) will certainly establish a full-fledged of Islamic bank by the acquisition of 100% ownership of PT Utama Internasional Bank (UIB).
The President Director of UIB D.E Sutijoso, has confirmed such acquisition will take placed on his press release in Jakarta yesterday, in 2009, the ownership of PT UIB will be officially transferred to BCA.
"Both parties has been signed an agreement under sale contracts on October 24 2008" said the President Director of P T UIB.
The business opportunity of UIB for BCA is quite promising since the UIB asset has a total amount of IDR 665.7 billions, with credit portfolio of IDR 462.2 billions and as of June 2008, the third parties funds has reached IDR 553.6 billions.
D.E Sutijoso said that UIB has five branch offices and 7 cashier's offices, the acquisition process will take about one year to be completed.
Islamic Finance observers, from Karim Business Consulting, Adiwarman Karim, said that the expected growth of Islamic banking business will be raised to 5%. As of July 2008, the Islamic banking total asset has reached IDR 43 Trillions and will increase to IDR 75 trillions which is about 4% by end of the year.
Moreover Karim said: "as a comparison of last year it needed 12 months to have IDR 10 trillion increment, but now it can be achieved by only seven months, it is easy to accomplished the 5% target. In order to achieve the 75 trillions or 4% by the end of the year is very easy and hopefully by 2009 it will pass beyond the 5%." The acceleration growth of Islamic banking business is because now we have Islamic banking act, we have issued sukuk and by next year double tax deduction is going to be removed.(Agus/Nibra www.pkesinteraktif.com)
Jakarta (30/10) Bank Central Asia (BCA) will certainly establish a full-fledged of Islamic bank by the acquisition of 100% ownership of PT Utama Internasional Bank (UIB).
The President Director of UIB D.E Sutijoso, has confirmed such acquisition will take placed on his press release in Jakarta yesterday, in 2009, the ownership of PT UIB will be officially transferred to BCA.
"Both parties has been signed an agreement under sale contracts on October 24 2008" said the President Director of P T UIB.
The business opportunity of UIB for BCA is quite promising since the UIB asset has a total amount of IDR 665.7 billions, with credit portfolio of IDR 462.2 billions and as of June 2008, the third parties funds has reached IDR 553.6 billions.
D.E Sutijoso said that UIB has five branch offices and 7 cashier's offices, the acquisition process will take about one year to be completed.
Islamic Finance observers, from Karim Business Consulting, Adiwarman Karim, said that the expected growth of Islamic banking business will be raised to 5%. As of July 2008, the Islamic banking total asset has reached IDR 43 Trillions and will increase to IDR 75 trillions which is about 4% by end of the year.
Moreover Karim said: "as a comparison of last year it needed 12 months to have IDR 10 trillion increment, but now it can be achieved by only seven months, it is easy to accomplished the 5% target. In order to achieve the 75 trillions or 4% by the end of the year is very easy and hopefully by 2009 it will pass beyond the 5%." The acceleration growth of Islamic banking business is because now we have Islamic banking act, we have issued sukuk and by next year double tax deduction is going to be removed.(Agus/Nibra www.pkesinteraktif.com)
Subscribe to:
Posts (Atom)