Islamic banking assets to grow 5pc per annum
Manama : Islamic Banking assets are projected to grow at a rate of 5 per cent per annum for the next couple of years, said Central Bank of Bahrain Governor yesterday.
Despite the economic slowdown that has affected the Middle East region, Rasheed M. Al-Maraj said, Islamic Bank asset will maintain a level of growth.
“While it previously enjoyed 14pc to 15pc growth per year, now it will grow around 5pc in the coming years,” he pointed out during the 24th World Islamic Banking Conference (WIBC) yesterday.
Al Maraj also told the conference participants that the slower asset growth was mainly due to subdued economic activity in the region.
He, however, pointed out that the number of Islamic Banks has grown to around 172 with another 83 or so Islamic Windows within conventional banks.
“According to the IFSB, the industry now employs more than 380,000 people worldwide, which reflects a significant level of economic activity by any measure,” he said in his address at the event.
He also stressed that the volume and level of sophistication in the Capital Markets arena deserves some recognition & mention.
“In 2017 to date there has been a Global issuance of Sukuks of $ 22 Billion, which is a record for Islamic Banking,” Al-Maraj said, adding: “Not only has demand remained strong but the geographic investor base has also become wider with a surge in demand from U.S investors in the case of a recent sovereign issue.”
In this regard, citing his speech last year and the faith-based nature of Islamic banking, Al Maraj pointed out that it is “critical for Islamic banks to adopt a robust Shari’ah governance framework.”
The responsibility, according to him, falls on the Board of Directors and senior management of Islamic banks to comply with the letter and spirit of Shari’ah and build an unmatched reputation for ethical banking.
During the event, Thomson Reuters launched The ICD-Thomson Reuters Islamic Finance Development Report 2017 & The Islamic Commercial Law Report 2018. The three-day event held Under the patronage of the Prime Minister HRH Prince Khalifa bin Salman Al Khalifa and being organised by International Islamic Financial Market at Art Rotana in Amwaj was in its second day yesterday.
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