LANGUAGES

Entries in English and Malay (Bahasa Melayu)

Tuesday, 23 June 2015

Indonesia regulator may ease foreign ownership rules for Islamic banks

Indonesia's financial regulator said it may ease foreign ownership restrictions for Islamic banks - a move that could attract Middle Eastern lenders such as Bahrain's Al Baraka Banking Group.
Under a 2012 rule introduced amid calls by nationalist politicians to limit foreign ownership, an overseas bank can only own up to 40 percent of an Indonesian lender.
Nelson Tampubolon, banking supervisor at Indonesia Financial Services Authority, said the regulator is looking at relaxing overseas ownership requirements in cases where a foreign bank plans to convert an Indonesian commercial lender to an Islamic one.
But certain conditions would apply, such as whether Indonesia already has a market access agreement with the foreign country and whether the foreign bank can bring in the expertise that local lenders lack, Tampubolon told Reuters in a text message.
His comments follow remarks earlier this month that China Construction Bank Corp would be permitted to own more than 40 percent of a merged Indonesian bank should it buy stakes in two separate lenders and combine them into a single entity.
Middle Eastern banks have shown "pretty strong" interest to expand in the world's most populous Muslim country, Tampubolon added.
A relaxation of the rule would help Bahrain-based Al Baraka with its plans to enter Indonesia's Islamic banking sector by as early as 2016, Chief Executive Adnan Ahmed Yousif told Reuters by email.
Al Baraka opened a representative office in Jakarta in 2008, which it has used to explore potential acquisition targets.

Last year Dubai Islamic Bank said it was seeking to raise its holding in PT Bank Panin Syariah Tbk to 40 percent from 24.9 percent. 
(Reuters / 22 June 2015)
---
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 Gateway Daily Briefing

The Islamic Finance Gateway (IFG) Briefing, published from Sunday to Thursday, carries the latest market-moving news and data for institutions offering Islamic financial services. You can view the full IFG briefing http://tmsnrt.rs/1I8LnSf under IFG Briefings Subject. TOP STORIES World Bank's IFC plans sukuk sale after Gulf summer
The International Finance Corp (IFC), the World Bank's lender to the private sector, has started work on a return to the market for Islamic bonds, or sukuk, with plans to issue sharia-compliant debt after summer in the Gulf region.
The Islamic Finance Briefings cover all the latest news, data, quotes and industry announcements you need. They also include Islamic Interbank Benchmark Rates, major FX and equity market movements and indicators for all sharia-compliant asset classes. To subscribe to the IFG Briefings use this link: http://online.thomsonreuters.com/ifg To subscribe to the IFG Community, use this link: https://www.zawya.com/zawya-islamic-community We value your feedback, contact us at IFG@thomsonreuters.com (Prepared by Tina Kwan) A service of Thomson Reuters and Zawya Islamic Finance Gateway. The contents of this Briefing are independently compiled by the Thomson Reuters and Zawya Islamic Finance Gateway Service, a business of the Global Growth and Operations Division. While material is drawn from Reuters News and other sources, Reuters has not participated in the selection of these articles.
(Yahoo News / 22 June 2015)
---
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!