LANGUAGES

Entries in English and Malay (Bahasa Melayu)

Friday, 21 November 2014

Malaysia: Great Eastern inks takaful deal with Bank Muamalat

KUALA LUMPUR: Great Eastern Takaful Bhd has signed an agreement to distribute bancatakaful products with Bank Muamalat Malaysia Bhd, enabling the former to tap into the latter’s customer base of 700,000.
Great Eastern chief operating officer Zafri Abdul Halim said the partnership is the best step to maximise both companies’ potential in providing holistic financial solutions to customers as it will allow Bank Muamalat to access Great Eastern’s range of products that will enhance the bank’s product offerings to its customers.
“Currently, three credit-related takaful products pertaining to housing loan, hire purchase and personal loan are available at Bank Muamalat. As for advisory, our investment-linked family takaful plan, i-Great Bakti, is offered through Bank Muamalat so far,” he said at the signing ceremony and the joint launch of its first family takaful plan, M-Tiara Hajj.
M-Tiara Hajj takaful plan provides assistance from as low as RM100 to prepare for customers’ Haj as well as a maximum of RM500 aid to certificate holders to help finance the cost of a Qurban during Hari Raya Aidiladha.
In the last financial year, bancatakaful from Bank Muamalat contributed about 10 per cent to Great Eastern’s takaful revenue.
“We expect to achieve substantial growth in terms of contribution with the launch of M-Tiara Hajj. With Bank Muamalat’s resources and commitment, we are confident that we are able to achieve this target,” Zafri said.
Bank Muamalat expects to see a take up rate of 3,000 from its base customers on the joint product.
“We received good feedback on the soft launch for the product three months ago even though the promotion campaign and exposure on the product is not wide enough,” said its head of consumer banking division Attar Salleh.
“The take up rate is expected to be achieved by the end of our year ending March 31 next year.” he added.
(New Straits Time Online / 19 November 2014)
---
Alfalah Consulting - Kuala Lumpur: www.alfalahconsulting.com
Consultant-Speaker-Motivator: www.ahmad-sanusi-husain.com
Islamic Investment Malaysia: www.islamic-invest-malaysia.com

Islamic finance body AAOIFI to revise four standards, eyes sukuk

The Bahrain-based Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) will revise four of its standards in the first half of next year while expanding its guidance for Islamic bonds, the industry body said.
Earlier this month, AAOIFI issued two new standards and revised three others as it takes a more proactive approach under its new secretary general, Hamed Hassan Merah.
AAOIFI held its annual conference this week, after which it said it would seek either to revise or supplement its existing standard for sukuk, to provide the industry with more extensive guidance.
"We are...looking at the possibility of developing clearer guidance on sukuk that will incorporate accounting, legal, technical and tax-related aspects," Merah said in a statement.
Sukuk issuance is increasing worldwide but the structures used to create the instruments aren't uniform, which limits their cross-border acceptance by investors and trading in the secondary markets.

Year-to-date, sukuk issuance totals $110.9 billion through 665 deals globally, up from $97.3 billion through 703 deals a year earlier, according to Zawya, a Thomson Reuters company.
AAOIFI is also revising its accounting standards covering investment accounts, takaful (Islamic insurance), and ijara and murabaha financing structures.
A revised investment accounts standard is to be released by the end of 2014, important for Islamic banks which are seeking greater clarity on how to classify their deposits.
Consultations on takaful, ijara and murabaha will be conducted in the first half of 2015, AAOIFI said.
On takaful, AAOIFI is considering how to extend its guidance to retakaful, the issue of fixing agency fees rather than linking the fees to profits or performance, and clarifying the definition of benevolent loans (qard hassan), a conference document showed.
For ijara, a sale and lease-back contract, AAOIFI wants to clarify distinctions between operating and financing leases. Industry practice is currently not aligned with the ijara standard, known as FAS 8; proposed changes would cover income recognition, balance sheet classification, depreciation, amortisation and disclosures, according to a separate conference document.
AAOIFI's murabaha standard will be redesigned to stipulate the use of collateral for the recovery of receivables, while specifying accounting treatment and disclosure requirements, a third document showed.
The body is also engaging its counterpart in conventional finance, the London-based International Accounting Standards Board; AAOIFI invited IASB officials to its annual conference in Manama.

An IASB official said on the sidelines of the conference that his organisation would seek to develop non-binding guidance on the interpretation of their standards by Islamic financial firms, to help reduce uncertainty in the marketplace.
(Reuters / 19 November 2014)
---
Alfalah Consulting - Kuala Lumpur: www.alfalahconsulting.com
Consultant-Speaker-Motivator: www.ahmad-sanusi-husain.com
Islamic Investment Malaysia: www.islamic-invest-malaysia.com

Latest Posts

Upcoming Events on Islamic Finance, Wealth Management, Business, Management, Motivational

Alfalah Consulting's facebook

NOTICE

Alfalah Consulting is NOT providing any kind of loan to finance project etc and asking for a fee. If you've received any email claiming to be from Alfalah Consulting, offering loan to you, please ignore it or inform us for further actions. Our official email is info@alfalahconsulting.com. If you've received an email from afalah.consulting@gmail.com, that's NOT from us. Be cautious!