The document summarizes the evolution of banking in India from pre-independence to post-independence. Some of the key events include the establishment of early commercial banks in the late 19th century, the nationalization of banks in 1955 which brought many banks under public ownership, and the emergence of new private sector banks in 1993. The structure of the financial institution in India includes organized sectors such as commercial banks, cooperative banks, and rural banks as well as unorganized non-institutional sources such as money lenders and indigenous bankers.
The document provides an overview of the Indian banking sector. Some key points:
- Total banking sector assets have grown at a CAGR of 11.71% from USD1.57 trillion in FY13 to USD1.96 trillion in FY15. Public sector banks account for over 70% of total assets.
- Credit growth has increased at a CAGR of 6% from FY11-15, reaching USD1016 billion in FY16. Deposits have grown at a CAGR of 11.47% during the same period.
- Interest income for the sector has grown at 11% CAGR from FY09-15, with public sector banks leading with
The document provides an overview of the banking industry, including its evolution and history. It discusses how banking originated in temples and palaces as safe places to store gold and other valuables. It then outlines the emergence of early banks like merchant banks in medieval times and the formalization of banking within distinct buildings by the Romans. The document also summarizes the nature, trends, and federal regulation of the modern banking industry.
The document provides an overview of the Indian banking industry, including its historical development, current state, and future outlook. It discusses the nationalization of banks in 1969 and 1980, the introduction of private sector banks in 1993, and the liberalization of the banking sector in the 1990s. It also summarizes the aggregate performance of the industry in terms of deposits, credit growth, and earnings. Looking ahead, it forecasts continued consolidation in the banking sector and a greater focus on retail banking and technology.
AMBL Identity Development Pitch PresentationWasim Sajid
The document outlines the brand identity development process for Apna Microfinance Bank Limited (AMBL), including gathering requirements, studying the competition, and developing the brand identity and logos. It details AMBL's vision, mission, objectives, and philosophy of empowering customers and alleviating poverty. It also analyzes competitors in the microfinance industry and considers AMBL's strengths, weaknesses, opportunities, and threats. Finally, it proposes four logo design concepts that aim to represent AMBL's values through color symbolism and graphical elements while differentiating the brand visually.
The document outlines the brand identity development process for Apna Microfinance Bank Limited (AMBL), including gathering requirements, studying competition, and developing an identity. It details AMBL's vision, mission, objectives, and philosophy of empowering customers and alleviating poverty. Requirements include providing microfinance and infrastructure in rural and urban areas. Competition includes other microfinance organizations and established banks. Several potential logos are presented that aim to depict growth, passion, and approachability while differentiating AMBL and appearing modern.
Islamic Banking: Inclusion in the Indian Banking SectorIOSR Journals
Innumerable changes have been witnessed in the Indian banking sector since last six decades. Various generations of financial sector reforms has changed the face and complexion of the Indian Banking Sector which is adopting various innovative practices with the focus on inclusive growth. Islamic banking is one such practice which is being considered in full fledged manner which otherwise has been practiced in an informal way. Islamic banking has set its foot on the path of rapid growth throughout the globe and India could not be isolated from it, looking at immense potential. The 1st Ernst & Young World Islamic Banking Competitiveness Report 2011 presented at the 18th Annual World Islamic Banking Conference stated that Islamic banking assets with commercial banks globally will reach US$1.1 trillion in 2012, a significant jump of 33% from their 2010 level of US$826 billion. The conventional banking as practiced by the Indian banking sector in its present form does stand in the way of the principles of Islamic banking which prohibits transaction on the basis of interest and operate on profit and loss based on Islamic principles. Introduction of interest free banking will require a lot of changes in the Banking Regulation Act.
- Bank of Baroda (BOB) was founded in 1908 in Baroda, India with a paid up capital of Rs. 10 lacs under the leadership of Maharaja Sayajirao Gaekwad III.
- It is currently the third largest public sector bank in India with over 4,283 branches across India and 111 branches overseas.
- Over the years, BOB has grown organically and through mergers and acquisitions. It has expanded its operations across 25 countries globally.
The document summarizes the evolution of banking in India from pre-independence to post-independence. Some of the key events include the establishment of early commercial banks in the late 19th century, the nationalization of banks in 1955 which brought many banks under public ownership, and the emergence of new private sector banks in 1993. The structure of the financial institution in India includes organized sectors such as commercial banks, cooperative banks, and rural banks as well as unorganized non-institutional sources such as money lenders and indigenous bankers.
The document provides an overview of the Indian banking sector. Some key points:
- Total banking sector assets have grown at a CAGR of 11.71% from USD1.57 trillion in FY13 to USD1.96 trillion in FY15. Public sector banks account for over 70% of total assets.
- Credit growth has increased at a CAGR of 6% from FY11-15, reaching USD1016 billion in FY16. Deposits have grown at a CAGR of 11.47% during the same period.
- Interest income for the sector has grown at 11% CAGR from FY09-15, with public sector banks leading with
The document provides an overview of the banking industry, including its evolution and history. It discusses how banking originated in temples and palaces as safe places to store gold and other valuables. It then outlines the emergence of early banks like merchant banks in medieval times and the formalization of banking within distinct buildings by the Romans. The document also summarizes the nature, trends, and federal regulation of the modern banking industry.
The document provides an overview of the Indian banking industry, including its historical development, current state, and future outlook. It discusses the nationalization of banks in 1969 and 1980, the introduction of private sector banks in 1993, and the liberalization of the banking sector in the 1990s. It also summarizes the aggregate performance of the industry in terms of deposits, credit growth, and earnings. Looking ahead, it forecasts continued consolidation in the banking sector and a greater focus on retail banking and technology.
AMBL Identity Development Pitch PresentationWasim Sajid
The document outlines the brand identity development process for Apna Microfinance Bank Limited (AMBL), including gathering requirements, studying the competition, and developing the brand identity and logos. It details AMBL's vision, mission, objectives, and philosophy of empowering customers and alleviating poverty. It also analyzes competitors in the microfinance industry and considers AMBL's strengths, weaknesses, opportunities, and threats. Finally, it proposes four logo design concepts that aim to represent AMBL's values through color symbolism and graphical elements while differentiating the brand visually.
The document outlines the brand identity development process for Apna Microfinance Bank Limited (AMBL), including gathering requirements, studying competition, and developing an identity. It details AMBL's vision, mission, objectives, and philosophy of empowering customers and alleviating poverty. Requirements include providing microfinance and infrastructure in rural and urban areas. Competition includes other microfinance organizations and established banks. Several potential logos are presented that aim to depict growth, passion, and approachability while differentiating AMBL and appearing modern.
Islamic Banking: Inclusion in the Indian Banking SectorIOSR Journals
Innumerable changes have been witnessed in the Indian banking sector since last six decades. Various generations of financial sector reforms has changed the face and complexion of the Indian Banking Sector which is adopting various innovative practices with the focus on inclusive growth. Islamic banking is one such practice which is being considered in full fledged manner which otherwise has been practiced in an informal way. Islamic banking has set its foot on the path of rapid growth throughout the globe and India could not be isolated from it, looking at immense potential. The 1st Ernst & Young World Islamic Banking Competitiveness Report 2011 presented at the 18th Annual World Islamic Banking Conference stated that Islamic banking assets with commercial banks globally will reach US$1.1 trillion in 2012, a significant jump of 33% from their 2010 level of US$826 billion. The conventional banking as practiced by the Indian banking sector in its present form does stand in the way of the principles of Islamic banking which prohibits transaction on the basis of interest and operate on profit and loss based on Islamic principles. Introduction of interest free banking will require a lot of changes in the Banking Regulation Act.
- Bank of Baroda (BOB) was founded in 1908 in Baroda, India with a paid up capital of Rs. 10 lacs under the leadership of Maharaja Sayajirao Gaekwad III.
- It is currently the third largest public sector bank in India with over 4,283 branches across India and 111 branches overseas.
- Over the years, BOB has grown organically and through mergers and acquisitions. It has expanded its operations across 25 countries globally.
The Bank of Baroda was founded in 1908 in India with a vision to promote trade and industry. It has grown significantly over the years under wise leadership and guidance. The bank recently updated its logo to the Baroda Sun, representing a universal symbol of dynamism and optimism to connect with its diverse customers and stakeholders across regions. The bank aims to utilize new technologies to provide superior customer experiences as it works to achieve its vision of regaining a leadership position in the public sector banking industry in India.
The document discusses the history and evolution of banking in India from ancient times to modern times. It covers the origins of banking in India, the pre-independence and post-independence banking systems, nationalization of banks in 1969 and 1980, types of banks in India including commercial banks, development banks and cooperative banks, policies of liberalization in the 1990s, and the increasing globalization of the Indian banking sector. It also provides details about the Bank of India as an example of a major public sector bank.
1) The Indian banking sector has grown at a healthy pace, with total assets reaching US$ 1.97 trillion in FY17 and credit off-take and deposits increasing at a CAGR of 12.38% and 10.08% respectively between FY07-17.
2) Interest income and other income have also seen robust growth for public sector, private sector, and foreign banks. Return on assets and loan-to-deposit ratios have also been trending upward across bank categories.
3) Notable trends in the banking industry include improved risk management practices, a continued
For updated information, please visit www.ibef.org February 2018
BANKING
[1] The Indian banking sector has grown at a healthy pace over the past decade, with total credit increasing at a CAGR of 12.38% during FY07-17 and total deposits increasing at a CAGR of 10.08% during the same period.
[2] Total banking sector assets have increased at a CAGR of 8.83% to US$ 2.202 trillion during FY13–17, with assets of public sector banks growing at 7.43% CAGR and private sector banks growing at 14.44% CAGR.
[3]
Indian banking sector has grown at a healthy pace over the past decade. Total credit off-take has increased at a CAGR of 10.94% during FY07-18 reaching $1,299 billion as of Q3 FY19. Total deposits have grown at a CAGR of 11.66% during the same period reaching $1,866 billion as of Q3 FY19. The assets base of banks across sectors continues to expand with total banking sector assets growing at a CAGR of 7.01% during FY13-18 to reach $2,358 billion in FY18. Notable trends in the banking industry include improved risk management practices, growing digitalization, and rising
Bank of Baroda (BoB) is one of the largest public sector banks in India with over 5000 branches globally. It was founded in 1908 in Baroda, Gujarat by the Maharaja of Baroda. Over the years, BoB has expanded both within India and internationally. In 1969, it was nationalized along with 13 other major banks. Today, BoB offers a wide range of banking products and services to corporate and retail customers. It has received several awards recognizing its leadership and customer service. BoB has a strong presence both within India and globally across over 20 countries.
The document provides an overview of the banking sector in India from pre-independence to current times. It discusses the early banks established in India in the 19th century during British rule. After independence, the government nationalized major banks in 1969 and 1980 to gain greater control over credit. Banking was liberalized in the 1990s, allowing private banks like HDFC and ICICI to form. Today India has over 150 banks with modern technologies like internet banking, ATMs, and UPI payments widely used. The future of Indian banking is expected to include consolidation and global expansion.
This document provides an overview of the history and development of banking in India. It discusses how the earliest banks originated in the late 18th century, and how foreign banks started establishing branches in India in the 1860s, with Calcutta becoming an important banking center. The document outlines the nationalization of India's banks in 1969 and 1980, and the subsequent liberalization of the banking sector in the 1990s with the introduction of private banks. It also provides context on the current state of India's banking industry and expected future growth.
The document provides an overview of the Indian banking sector as of June 2017. It highlights that total assets in the banking sector reached USD1.96 trillion in FY15 and are expected to reach USD1.97 trillion in FY17. Lending and deposits have increased at a CAGR of 6% and 12.9% respectively between FY11-15. The number of ATMs increased to 207,402 as of February 2017. Rural banking penetration is also rising with 56 regional rural banks functioning and over 1 lakh accounts opened by Airtel payments bank in rural UP.
This document provides an introduction to banking and loans. It defines banking as accepting deposits from the public that are repayable on demand and can be withdrawn by cheque. It also defines a loan as the lending of money from one entity to another at an interest rate, with the borrower obligated to repay the principal plus interest. The document then discusses various types of bank loans like personal, home, car, and business loans. It provides an overview of the Indian banking sector and lists various initiatives and developments in the industry.
The document provides an acknowledgement for the completion of a report. It thanks various individuals who provided cooperation and assistance at different stages of the report, including the supervisor Mr. Asad Shahjan for helping with selecting a topic during a time of confusion. It also thanks staff members of Bank Islami Branch Mansehra for providing guidance and valuable information, especially the operational manager Mr. Shafqat Hussain. Finally, it expresses gratitude to Allah for giving the strength to fulfill the task efficiently.
This is a latest development in Indian banking landscape after the Government of India announced the intention to license new commercial banks in private sector. Reserve bank of India, the banking regulator has set the process. This is a milestone development in Indian banking landscape. Final guidelines would be issued by Reserve Bank after necessary dialogue with government.
This document provides an overview of the banking industry in India. It discusses the history and evolution of banking in four phases: pre-nationalization from 1786-1969, nationalization from 1969-1991, financial reforms from 1991-2004, and increased liberalization from 2004 onwards. Key events included the establishment of India's first bank in 1786, nationalization of major banks in 1969 and 1980, introduction of new technologies in the 1990s-2000s, and further liberalization allowing foreign ownership in banks. The document also covers the structure of the banking industry, issues like non-performing assets, opportunities in technology and growth, and threats like rising inflation. It provides job profiles for MBAs and the skills required to work
This document discusses the evolution and future of banking in India. It outlines 5 phases of banking: 1) Indigenous reign, 2) Direct state intervention, 3) Liberalization, 4) Transition to modern banking, and 5) Entry of foreign banks. Key developments include nationalization of banks in 1969/1980, liberalization in 1991, and growth of private sector and foreign banks. The future of banking involves increased technology, niche competitors, and a focus on green initiatives.
The document provides an overview of the Indian banking industry, outlining its history and evolution over three phases:
1) Early phase from 1786-1969 with the establishment of the first banks and a slow growth period.
2) Nationalization phase from 1969-1991 where the government nationalized major private banks to increase accessibility.
3) Post-1991 liberalization phase where reforms increased competition and modernized services through new technology.
The industry is now diverse with public, private, and specialized banks serving both rural and urban customers across India.
The banking sector in India plays an important role in the Indian economy, contributing 10% to GDP. It consists of public, private, and foreign banks as well as rural cooperatives. The Reserve Bank of India regulates the sector, controlling money supply and maintaining stability. It also acts as a controller, supervisor, and issuer of currency. Major public sector banks include SBI and PNB, while major private banks are HDFC Bank, ICICI Bank, and Axis Bank. Foreign banks have a smaller market share but this is projected to grow. Non-performing assets have declined while profitability has increased across all bank types. The sector offers opportunities for growth through financial inclusion, new licenses under Basel III, and a growing economy
This presentation provides an overview of bancassurance in India. Bancassurance involves the distribution of insurance products through bank distribution channels. It allows banks and insurance companies to leverage each other's large customer bases. In India, major private sector banks and insurance companies have formed joint ventures to engage in bancassurance. While it provides benefits like increased market reach, there are also risks like potential conflicts of interest if banks prioritize their own products over insurance. Overall, bancassurance is beneficial as it creates new revenue streams for banks and insurers while offering customers more convenient access to an integrated set of financial services.
The document summarizes the history and development of the Indian banking system from its origins in the 18th century to recent reforms and liberalization. It describes the nationalization of major banks in 1969 and changes introduced in the 1990s that opened the sector to private competition and globalization. The summary highlights the transformation of the Indian economy and banking sector from a regulated system focused on industry to an increasingly liberalized and competitive system mirroring broader macroeconomic changes.
The document summarizes the history of mergers in the Indian banking system from the 1960s to present. It discusses that mergers began in the 1960s to bail out weaker banks and protect customers. It then outlines some of the major mergers that have occurred during different time periods due to economic reforms, nationalization efforts, and the goal of creating stronger, more competitive banks. The key mergers discussed include the merging of State Bank of India with its associate banks in 2017 and the merging of 10 public sector banks into 4 that was announced in 2019. Advantages and problems arising from mergers are also presented.
The document discusses the principles of Islamic financial systems. It covers topics such as the fundamental principles of Islam like tawhid (unity of God), khilafah (vicegerency), and adalah (justice). It also discusses maqasid al-shariah (objectives of shariah), the strategy of Islamic economics, differences between conventional and Islamic financial systems, principles of Islamic banking like prohibition of interest and risk sharing, and objectives of seeking human welfare through allocating resources in accordance with Islamic teachings.
The document outlines an Islamic finance workshop held in Dakar, Senegal in November 2013. It discusses the origin and principles of Islamic finance, which are based on ethical values of preserving faith, life, intellect, wealth and posterity for all. Islamic finance prohibits interest (riba) and involves profit/loss sharing and mark-up for trade financing. The outline discusses the growth of the global Islamic finance industry, including segments like Islamic banking, sukuk bonds, funds and microfinance. It notes the industry has grown to over $1 trillion in assets, with the majority in banking and located in the Middle East and Southeast Asia, though Africa is an emerging market.
The Bank of Baroda was founded in 1908 in India with a vision to promote trade and industry. It has grown significantly over the years under wise leadership and guidance. The bank recently updated its logo to the Baroda Sun, representing a universal symbol of dynamism and optimism to connect with its diverse customers and stakeholders across regions. The bank aims to utilize new technologies to provide superior customer experiences as it works to achieve its vision of regaining a leadership position in the public sector banking industry in India.
The document discusses the history and evolution of banking in India from ancient times to modern times. It covers the origins of banking in India, the pre-independence and post-independence banking systems, nationalization of banks in 1969 and 1980, types of banks in India including commercial banks, development banks and cooperative banks, policies of liberalization in the 1990s, and the increasing globalization of the Indian banking sector. It also provides details about the Bank of India as an example of a major public sector bank.
1) The Indian banking sector has grown at a healthy pace, with total assets reaching US$ 1.97 trillion in FY17 and credit off-take and deposits increasing at a CAGR of 12.38% and 10.08% respectively between FY07-17.
2) Interest income and other income have also seen robust growth for public sector, private sector, and foreign banks. Return on assets and loan-to-deposit ratios have also been trending upward across bank categories.
3) Notable trends in the banking industry include improved risk management practices, a continued
For updated information, please visit www.ibef.org February 2018
BANKING
[1] The Indian banking sector has grown at a healthy pace over the past decade, with total credit increasing at a CAGR of 12.38% during FY07-17 and total deposits increasing at a CAGR of 10.08% during the same period.
[2] Total banking sector assets have increased at a CAGR of 8.83% to US$ 2.202 trillion during FY13–17, with assets of public sector banks growing at 7.43% CAGR and private sector banks growing at 14.44% CAGR.
[3]
Indian banking sector has grown at a healthy pace over the past decade. Total credit off-take has increased at a CAGR of 10.94% during FY07-18 reaching $1,299 billion as of Q3 FY19. Total deposits have grown at a CAGR of 11.66% during the same period reaching $1,866 billion as of Q3 FY19. The assets base of banks across sectors continues to expand with total banking sector assets growing at a CAGR of 7.01% during FY13-18 to reach $2,358 billion in FY18. Notable trends in the banking industry include improved risk management practices, growing digitalization, and rising
Bank of Baroda (BoB) is one of the largest public sector banks in India with over 5000 branches globally. It was founded in 1908 in Baroda, Gujarat by the Maharaja of Baroda. Over the years, BoB has expanded both within India and internationally. In 1969, it was nationalized along with 13 other major banks. Today, BoB offers a wide range of banking products and services to corporate and retail customers. It has received several awards recognizing its leadership and customer service. BoB has a strong presence both within India and globally across over 20 countries.
The document provides an overview of the banking sector in India from pre-independence to current times. It discusses the early banks established in India in the 19th century during British rule. After independence, the government nationalized major banks in 1969 and 1980 to gain greater control over credit. Banking was liberalized in the 1990s, allowing private banks like HDFC and ICICI to form. Today India has over 150 banks with modern technologies like internet banking, ATMs, and UPI payments widely used. The future of Indian banking is expected to include consolidation and global expansion.
This document provides an overview of the history and development of banking in India. It discusses how the earliest banks originated in the late 18th century, and how foreign banks started establishing branches in India in the 1860s, with Calcutta becoming an important banking center. The document outlines the nationalization of India's banks in 1969 and 1980, and the subsequent liberalization of the banking sector in the 1990s with the introduction of private banks. It also provides context on the current state of India's banking industry and expected future growth.
The document provides an overview of the Indian banking sector as of June 2017. It highlights that total assets in the banking sector reached USD1.96 trillion in FY15 and are expected to reach USD1.97 trillion in FY17. Lending and deposits have increased at a CAGR of 6% and 12.9% respectively between FY11-15. The number of ATMs increased to 207,402 as of February 2017. Rural banking penetration is also rising with 56 regional rural banks functioning and over 1 lakh accounts opened by Airtel payments bank in rural UP.
This document provides an introduction to banking and loans. It defines banking as accepting deposits from the public that are repayable on demand and can be withdrawn by cheque. It also defines a loan as the lending of money from one entity to another at an interest rate, with the borrower obligated to repay the principal plus interest. The document then discusses various types of bank loans like personal, home, car, and business loans. It provides an overview of the Indian banking sector and lists various initiatives and developments in the industry.
The document provides an acknowledgement for the completion of a report. It thanks various individuals who provided cooperation and assistance at different stages of the report, including the supervisor Mr. Asad Shahjan for helping with selecting a topic during a time of confusion. It also thanks staff members of Bank Islami Branch Mansehra for providing guidance and valuable information, especially the operational manager Mr. Shafqat Hussain. Finally, it expresses gratitude to Allah for giving the strength to fulfill the task efficiently.
This is a latest development in Indian banking landscape after the Government of India announced the intention to license new commercial banks in private sector. Reserve bank of India, the banking regulator has set the process. This is a milestone development in Indian banking landscape. Final guidelines would be issued by Reserve Bank after necessary dialogue with government.
This document provides an overview of the banking industry in India. It discusses the history and evolution of banking in four phases: pre-nationalization from 1786-1969, nationalization from 1969-1991, financial reforms from 1991-2004, and increased liberalization from 2004 onwards. Key events included the establishment of India's first bank in 1786, nationalization of major banks in 1969 and 1980, introduction of new technologies in the 1990s-2000s, and further liberalization allowing foreign ownership in banks. The document also covers the structure of the banking industry, issues like non-performing assets, opportunities in technology and growth, and threats like rising inflation. It provides job profiles for MBAs and the skills required to work
This document discusses the evolution and future of banking in India. It outlines 5 phases of banking: 1) Indigenous reign, 2) Direct state intervention, 3) Liberalization, 4) Transition to modern banking, and 5) Entry of foreign banks. Key developments include nationalization of banks in 1969/1980, liberalization in 1991, and growth of private sector and foreign banks. The future of banking involves increased technology, niche competitors, and a focus on green initiatives.
The document provides an overview of the Indian banking industry, outlining its history and evolution over three phases:
1) Early phase from 1786-1969 with the establishment of the first banks and a slow growth period.
2) Nationalization phase from 1969-1991 where the government nationalized major private banks to increase accessibility.
3) Post-1991 liberalization phase where reforms increased competition and modernized services through new technology.
The industry is now diverse with public, private, and specialized banks serving both rural and urban customers across India.
The banking sector in India plays an important role in the Indian economy, contributing 10% to GDP. It consists of public, private, and foreign banks as well as rural cooperatives. The Reserve Bank of India regulates the sector, controlling money supply and maintaining stability. It also acts as a controller, supervisor, and issuer of currency. Major public sector banks include SBI and PNB, while major private banks are HDFC Bank, ICICI Bank, and Axis Bank. Foreign banks have a smaller market share but this is projected to grow. Non-performing assets have declined while profitability has increased across all bank types. The sector offers opportunities for growth through financial inclusion, new licenses under Basel III, and a growing economy
This presentation provides an overview of bancassurance in India. Bancassurance involves the distribution of insurance products through bank distribution channels. It allows banks and insurance companies to leverage each other's large customer bases. In India, major private sector banks and insurance companies have formed joint ventures to engage in bancassurance. While it provides benefits like increased market reach, there are also risks like potential conflicts of interest if banks prioritize their own products over insurance. Overall, bancassurance is beneficial as it creates new revenue streams for banks and insurers while offering customers more convenient access to an integrated set of financial services.
The document summarizes the history and development of the Indian banking system from its origins in the 18th century to recent reforms and liberalization. It describes the nationalization of major banks in 1969 and changes introduced in the 1990s that opened the sector to private competition and globalization. The summary highlights the transformation of the Indian economy and banking sector from a regulated system focused on industry to an increasingly liberalized and competitive system mirroring broader macroeconomic changes.
The document summarizes the history of mergers in the Indian banking system from the 1960s to present. It discusses that mergers began in the 1960s to bail out weaker banks and protect customers. It then outlines some of the major mergers that have occurred during different time periods due to economic reforms, nationalization efforts, and the goal of creating stronger, more competitive banks. The key mergers discussed include the merging of State Bank of India with its associate banks in 2017 and the merging of 10 public sector banks into 4 that was announced in 2019. Advantages and problems arising from mergers are also presented.
The document discusses the principles of Islamic financial systems. It covers topics such as the fundamental principles of Islam like tawhid (unity of God), khilafah (vicegerency), and adalah (justice). It also discusses maqasid al-shariah (objectives of shariah), the strategy of Islamic economics, differences between conventional and Islamic financial systems, principles of Islamic banking like prohibition of interest and risk sharing, and objectives of seeking human welfare through allocating resources in accordance with Islamic teachings.
The document outlines an Islamic finance workshop held in Dakar, Senegal in November 2013. It discusses the origin and principles of Islamic finance, which are based on ethical values of preserving faith, life, intellect, wealth and posterity for all. Islamic finance prohibits interest (riba) and involves profit/loss sharing and mark-up for trade financing. The outline discusses the growth of the global Islamic finance industry, including segments like Islamic banking, sukuk bonds, funds and microfinance. It notes the industry has grown to over $1 trillion in assets, with the majority in banking and located in the Middle East and Southeast Asia, though Africa is an emerging market.
The document provides an overview of Islamic finance instruments, with a focus on Murabaha. It defines Murabaha as a sale transaction where the seller discloses the cost of goods to the buyer and adds a known profit margin. The key steps of a Murabaha transaction are that the bank appoints the client as an agent to purchase goods, then the bank sells those goods to the client on a deferred payment basis at a marked-up price including the disclosed profit. Several legal documents are required to structure a Sharia-compliant Murabaha deal.
The document compares and contrasts insurance and takaful. It provides details on:
1) Insurance is a contract where one party agrees to take on the risk of another in exchange for premium payments. The risk bearer is the insurer and the party whose risk is covered is the insured.
2) Takaful is an Islamic insurance system based on mutual assistance and donation, where risks are shared collectively. It follows the principles of tabarru (donation) and ta'awun (mutual guarantee).
3) There are several takaful models including mudarabah, wakalah, and waqf models. The waqf model establishes a waqf fund through shareholder contributions to compensate
Islamic banking provides an interest-free alternative to conventional banking based on Shariah (Islamic law) principles. It prohibits Riba (usury or interest) and involves profit/loss sharing arrangements. While still evolving, Islamic banking has grown significantly in recent decades and shows potential to mobilize resources and support economic development in accordance with Islamic values. However, it also faces ongoing challenges in translating principles into practical products and services.
The document discusses the history and structure of mutual funds. It notes that the first mutual fund was established in Europe in 1774. It then outlines the key participants in a mutual fund structure including boards of directors, sponsors, custodians, investment advisors, transfer agents, and dealers. The document also covers advantages such as diversification and professional management, as well as disadvantages like costs and taxes. Finally, it briefly discusses types of mutual funds and regulations governing mutual funds.
Tapping into islamic finance for non muslimsLokesh Gupta
The document discusses Islamic financing and banking. It begins with an overview of Islamic banking principles, which are based on prohibiting interest and promoting risk sharing. It then outlines the evolution of Islamic banking products in Malaysia from the 1980s to present day, including deposit accounts, financing for individuals and corporations. The document notes the average growth rate of Islamic financing in Malaysia is 12.3% annually. It also discusses factors that encourage non-Muslims to use Islamic financial services and the importance of ethical and welfare-oriented aspects of Islamic financing.
This document discusses the development, prospects, and challenges of Islamic banking in India. It provides background on Islamic banking principles and outlines its historical development in India through various cooperative societies and funds established since the late 1800s. More recently, committees established by the RBI and Planning Commission have recommended allowing Islamic banking in India. The state of Kerala has also initiated partnerships with Islamic financial groups, though these faced legal challenges. Overall, the document examines the current scenario and potential for Islamic banking in India if supportive regulations and awareness can be increased.
Development of the Malaysian Islamic Financial SystemMahyuddin Khalid
This document discusses the development of the Malaysian Islamic financial system. It covers:
1) The historical development of Islamic banking in Malaysia, from the establishment of Lembaga Tabung Haji in 1963 to the passing of the Islamic Banking Act in 1983 which allowed the creation of Bank Islam Malaysia, the country's first Islamic bank.
2) The three phases of development - the first phase focused on establishing the necessary legal and regulatory framework; the second phase expanded the system to include more Islamic financial institutions; the third phase further developed Islamic capital markets.
3) Key milestones and regulations that helped grow the system, such as the Government Investment Act which allowed Shariah-compliant short-term
1. This document discusses a study that analyzed customer acceptance of products from Islamic versus conventional financial institutions in Malaysia. The study found that while more customers were accepting Islamic products as Islamic institutions grew, some customers still preferred conventional products.
2. The document provides background on the Malaysian financial system, which includes both Islamic and conventional institutions operating in parallel. It outlines some key differences between Islamic and conventional institutions, such as Islamic institutions prohibiting interest and requiring profit/loss sharing.
3. Various Islamic banking products are described, such as Wadiah savings accounts, Mudarabah and Musharakah contracts for profit/loss sharing investments and financing, and Murabahah contracts for cost-plus asset purchases.
This document provides an overview of Islamic banking in Malaysia. It begins by defining Islamic banking according to the Organization of Islamic Conference as banking activities based on Islamic law (Shariah) that follow the principles of fiqh muamalat. The document then outlines the objectives of Islamic banking and explains the need for Islamic banking in Malaysia's financial system. It provides details on the implementation of Islamic banking in Malaysia, including the establishment of the first Islamic bank in 1983. The document also compares Islamic banking to conventional banking and summarizes the various Islamic financial instruments available in Malaysia.
Here are the answers to your questions:
1. Islamic jurisprudence
2. Interest on loans
3. Interest forbidden by Islam
4. Equity financing
5. Legitimate trade
6. Anand Sinha
7. Karachi, Pakistan
8. Islamic leasing bond
9. Islamic insurance
10. Good loan
Islamic banking is gaining popularity globally as an interest-free alternative to conventional banking that complies with Sharia (Islamic law). Some key financing models used in Islamic banking include Mudarabah (profit-loss sharing), Murabahah (cost-plus sale), and Ijarah (leasing). While Islamic banks operate similarly to conventional banks in mobilizing deposits and allocating funds, they prohibit interest and invest funds using Sharia-compliant contracts. The emergence of Islamic banking has provided an innovative financial system, though it faces challenges in developing new products to better compete with conventional banks.
The document provides an introduction to Islamic microfinance. It discusses the differences between Islamic and conventional microfinance, highlighting that Islamic microfinance is based on risk-sharing partnerships rather than interest-bearing loans. Various Islamic microfinance products are described, including modes based on trade, partnership, and rental. The progress and growth of Islamic banking internationally and in Pakistan is also summarized.
The document provides an introduction to Islamic microfinance. It discusses the differences between Islamic and conventional microfinance, highlighting that Islamic microfinance is based on risk-sharing partnerships rather than interest-based lending. Various Islamic microfinance product structures are described, including modes based on trade, partnership and rental. The progress and growth of Islamic banking globally and in Pakistan is also summarized.
- Islamic banking is a system of banking consistent with Shariah (Islamic law) and its core principles. It prohibits interest-based transactions and transactions that involve uncertainty and speculation.
- Islamic banking has grown rapidly in Pakistan in recent years, with its market share expected to reach 12% of the total banking sector by 2012. Several major Pakistani banks now offer Islamic banking products and services.
- Islamic banks operate according to profit-and-loss sharing models like mudaraba (investment partnership) and musharaka (joint venture partnership) rather than interest-based lending. They must separate Islamic banking activities from conventional banking.
The global Islamic finance industry has grown rapidly over the past decade and now manages over $1 trillion in assets. Several factors are driving continued growth, including increased capital from Muslim-majority countries, the rise of Islamic multinationals, and growing retail demand. While the industry has potential to tap into the large Muslim population worldwide, it still needs to educate customers and differentiate itself more from conventional finance. Regulatory challenges and a lack of skilled professionals could hamper further expansion.
Internship report on MCB Limited by Labeeda FaridLabeeda Farid
This internship report summarizes the internship experience of Labeeda Farid at MCB Bank Limited, focusing on the human resource department. MCB Bank is one of the largest and oldest banks in Pakistan, established in 1947. The report provides an overview of MCB Bank, including its vision, history, organizational structure, products and services. It also describes the key departments Labeeda Farid worked in, including customer dealing and operations, and the tasks she completed during her six-week internship.
Details about the Islamic banking system in Pakistan and give an overview of Islamic banking in any Islamic country. It gives some help for the fresh students to learn about Islamic banking.
Presentation by Amirul HM & Penny Siew at the Asia-Europe Institute - University of Malaya for "Financial & Accounting Ratios for SMEs" subject, IMSME Programme. 2009.
This document discusses the renaissance of Islamic banking in Central Asia and its feasibility in India. It outlines how Islamic banking has grown in Central Asia since the 1990s through constitutional amendments allowing Islamic financial institutions. Islamic banking has intensified economic growth by supporting small businesses through profit/loss sharing models. While some micro Islamic financial institutions have existed in India for over a century, the document argues full implementation is constitutionally and economically feasible given India's large Muslim population but challenges remain due to current banking laws. It provides recommendations such as establishing an Indian Islamic bank and cooperative credit societies to expand access to ethical and inclusive banking.
Emergence of islamic Finance in Malaysia (2017) & Career in Islamic FinanceAmir Alfatakh
The Emergence of Islamic Finance, career opportunities in Islamic Finance, and what the industry is looking for (Career briefing to International Islamic University of Malaysia IIUM in April 2017)
The document discusses Islamic banking and finance principles and the state of the Islamic banking industry in Pakistan and globally. It provides an overview of Islamic banking products and principles, how they differ from conventional banking, and the progress and market share of Islamic banking in Pakistan and major countries. It also outlines the roles and activities of AlHuda Centre of Islamic Banking and Economics in promoting Islamic banking through education, research, and advisory services.
The document discusses Islamic banking and finance principles and the progress of the Islamic banking industry in Pakistan. It provides an overview of Islamic banking products and compares Islamic and conventional banking. The summary highlights that Islamic banking prohibits interest and is based on asset-backed financing, risk-sharing, and Shariah compliance. It also notes that the Islamic banking industry has grown significantly in Pakistan and globally in recent years.
This document summarizes an Islamic banking conference presentation about the common perceptions of Islamic banking, the current state of Islamic finance globally, and its future prospects. The presentation discusses how Islamic banking differs from conventional banking in avoiding interest and being asset-backed. It provides an overview of the growth of Islamic financial institutions and products around the world and their projected continued expansion in the future.
1. Islamic Finance as an Alternative
Banking Business Model
Executive Session – 16th World Business Dialogue
Kevin Gilhawley
2. Why should you care about Islamic Finance?
Market Size and Need for Change in the
1 2 Business Opportunities 3
Growth Rate Financial System
16th World Business Dialogue 130314_WBD_IBF_v01.pptx
1
3. Market Overview
Islamic Finance Fundamentals
Comparison to Conventional Finance
Case Studies
Islamic Finance as an Alternative System
Discussion
16th World Business Dialogue 130314_WBD_IBF_v01.pptx
2
4. 1 Market Overview
Islamic Finance has received positive comments from
influential individuals in the last decade
“The ethical principles on
which Islamic finance is based „We need to make Britain the
may bring banks closer to global centre for Islamic
their clients and to the true finance to participate in the
spirit which should mark industry’s promising future“
every financial service”
Gordon Brown, Former Prime
Benedict XVI Minister of the United
Kingdom
„The rapidly growing Islamic
Finance sector contributes
significantly to a broadening
of our funding-structure“
Dr. Josef Ackermann, Former
CEO Deutsche Bank
16th World Business Dialogue 130314_WBD_IBF_v01.pptx
3
5. 1 Market Overview
More than one quarter of the world population are Muslims
Global Estimated Muslim Populations – Selective Markets (2010)
Share of Muslims in % of Population
<5 5-14 15-49 50-89 90-100
Source: Booz & Company Analysis
16th World Business Dialogue 130314_WBD_IBF_v01.pptx
4
6. 1 Market Overview
The penetration of Islamic banking is growing on the back of
a number of new institutions in traditional markets
Selected Islamic Banks (excluding Banks with Islamic windows)
Syria Kuwait
Syria International Islamic Bank Kuwait Finance House
(September 2007) Kuwait International Bank*
Cham Bank (October 2006) Bahrain
Boubyan Bank (January 2006)
Albaraka Bank Syria (January 2008) Bahrain Islamic Bank
Warba Bank (March 2010)
Shamil Bank
Khaleeji Commercial Bank
Al Baraka Islamic Bank
Indonesia
Al Salam Bank (April 2006)
Bank Syariah Mandiri
Al Masref Bank (March 2006)
PT Bank Muamalat Indonesia
UUS BNI Syariah
PT Bank Syariah Mega Indonesia
Qatar
PT BRI Syariah (2008)
Qatar Islamic Bank
PT Bukopin Syariah (2008)
Qatar International Islamic Bank
Masraf Al Rayan (October 2006)
Barwa Bank (June 2007)
Malaysia
Bank Islam Malaysia Berhad
Bank Muamalat
UAE Asian Finance Bank (January 2007)
Dubai Islamic Bank KFH Malaysia (February 2006)
Abu Dhabi Islamic Bank Al Rajhi Bank Malaysia (October 2006)
Saudi Arabia National Bank of Sharjah
Al Rajhi Bank Emirates Islamic Bank
Bank Al Jazira Sharjah Islamic Bank*
Bank Al Bilad (2006) Dubai Bank*
Bank Al Inma (October 2008) Noor Islamic Bank (January 2008)
Al Hilal Bank (June 2008)
Ajman Bank (June 2008)
Note (*) Conversions of conventional banks to Islamic banks
Source: Central Banks, The Banker, Islamic Business and Finance Network, Islamic Development Bank
16th World Business Dialogue 130314_WBD_IBF_v01.pptx
5
7. 1 Market Overview
We‘ve experienced some Islamic banking activity in Europe,
but everybody is still waiting for the major breakthrough
Islamic Banking in Europe
United Kingdom Germany
5 Islamic Banks – only one First institutional
with focus on retail banking transactions
(Islamic Bank of Britain) Limited retail offering
High Street Banks setting up
Austria
Islamic Windows
Islamic Banking-
Concepts in
development
Luxembourg
Popular location for
Islamic investment funds France
due to regulatory Expected market entry
adjustments of several Islamic Banks Switzerland Turkey
Numerous Islamic Currently four purely
Wealth Management- Islamic Banks
Offerings On- and (Participation Banks),
Offshore mostly founded by Arab
banks
16th World Business Dialogue 130314_WBD_IBF_v01.pptx 6
8. 1 Market Overview
Especially Swiss Banks recognized the potential of Islamic
Finance and strengthend their position in the GCC-countries
Swiss banks in Muslim countries (Onshore)
Lebanon
Indonesia,
Malaysia,
Singapur
GCC (Saudi-Arabia, United Arab Emirates
Kuwait, Qatar, Bahrain, Oman)
Source: Booz & Company Analysis
16th World Business Dialogue 130314_WBD_IBF_v01.pptx
7
9. 1 Market Overview
Islamic Finance grows at a higher pace than conventional
finance and continually gains more market share
Worldwide banking assets Islamic Banks’ Market Share
USD trillion 2008 vs. 2003
CAGR
5.1% 34.5%
105.3 Kuwait
98.6 101.1
CAGR 90.8 16.0%
9.5%
77.5
63.2 65.5 38.0%
56.0 KSA
47.4 21.0%
40.1 40.8 41.8 41.5
16.0%
UAE
1998 2000 2002 2004 2006 2008E 2010E 9.0%
Worldwide Islamic banking assets*
USD trillion 14.0%
Malaysia
CAGR 9.0%
22.1% 1.00
0.87
0.75 9.0%
Bahrain
CAGR 0.55 4.0%
16.4%
0.37 0.40
0.31 0.33 4.0%
0.26 0.28
0.23 Indonesia 2009
0.14 0.16
0.7%
2003
1998 2000 2002 2004 2006 2008E 2010E
* Estimated based on publicly available data and forecast; years for which no data was available have been extrapolated based on the average growth rate for the period
Source: Council for Islamic Banks, Press Releases, Standard & Poor’s, Economist Intelligence Unit; Booz & Company analysis
16th World Business Dialogue 130314_WBD_IBF_v01.pptx
8
10. Market Overview
Islamic Finance Fundamentals
Comparison to Conventional Finance
Case Studies
Islamic Finance as an Alternative System
Discussion
16th World Business Dialogue 130314_WBD_IBF_v01.pptx
9
11. 4 Case Studies
Introducing Islamic Banking and Finance
http://www.youtube.com/v/M7kiLLlwbuQ EXAMPLE
16th World Business Dialogue 130314_WBD_IBF_v01.pptx
10
12. 2 Islamic Finance Fundamentals
Islamic Finance describes financial services which are
conducted according to Islamic Law
Shari’ah-Restrictions for Financial Services
Prohibition of Usury Prohibition of Speculation Prohibition of Gambling Shari’ah Board
“ ﻱThe trade of the petty usurer is hated with most reason: it makes a profit
from currency itself, instead of making it from the process which currency
was meant to serve.”
Aristotle
16th World Business Dialogue 130314_WBD_IBF_v01.pptx
11
13. 2 Islamic Finance Fundamentals
In Islam activities can be classified as haram (prohibited) or
halal (lawful)
Permissibility of Things in Islam
Halal Haram
16th World Business Dialogue 130314_WBD_IBF_v01.pptx
12
14. 2 Islamic Finance Fundamentals
Islamic principles embrace risk sharing and have a strong
focus on productive activities
Key Principles of Islamic Finance
Overarching principles founded in Shari’ah objectives aiming at the protection of individuals’ personal and
religious rights, upholding of high ethical standards and higher equality of wealth distribution
Transaction requirements Risk sharing requirements
ﻱUnderlying activities based in real economy ﻱEarning of legitimate profits requires sharing of
ﻱActual trade or business activities (not pro- risks as well (e.g. in Mudaraba or Musharaka
forma) structures)
ﻱNo speculative transactions ﻱNot only form, but substance of contract have
to be honoured at all times
ﻱNo interest-based deals
ﻱNo business involving illegal or unethical
activities not complying with Shari’ah
ﻱShari’ah law do not allow the detachment of the financial sector from productive activities, thus Islamic assets
can be expected to grow in line with real economy and usage of excessive leverage is avoided
ﻱSpeculation is forbidden and excessive risk taking is discouraged by the risk sharing nature of many contracts
ﻱUpholding of Shari’ah principles reduces risk of financial unrest and promotes stability
Source: Islamic Finance and Global Financial Stability Report (April 2010), Booz & Company analysis
16th World Business Dialogue 130314_WBD_IBF_v01.pptx
13
15. 2 Islamic Finance Fundamentals
Participatory profit and risk sharing contract structures play a
key role for the generation of funds in Islamic banks
ILLUSTRATIVE
Financing Structure of Islamic Banks
Assets Liabilities
Inventory Current / Demand Deposits
Real estate Wadiah (Safe custody) /
Automobiles Ward (loan)
Asset-backed Transactions Unrestricted Investment
Similar to conventional Murabaha (cost plus) Accounts
loans, however, legal Ijara (leasing)
Mudarabah (profit sharing, loss Similar to fixed deposits, but
positions of both parties Istisna’ (manufacture)
bearing)
based on different Salam (forward delivery) returns to depositors are set
contract forms Restricted Investment Accounts as a fixed ratio of returns
earned on the asset side,
Profit Sharing Transactions Mudarabah (profit sharing, loss while losses are borne by the
Investor - Entrepreneur bearing)
relationship between bank Mudaraba (profit sharing, loss client alone
and client bearing)
Musharaka (profit and loss
sharing) Profit Equalization Reserves Building of reserves for
losses on profit and loss
Fee Based Services sharing accounts as
Equity prudential measure
Source: Islamic Finance and Global Financial Stability Report (April 2010), Booz & Company analysis
16th World Business Dialogue 130314_WBD_IBF_v01.pptx
14
16. Market Overview
Islamic Finance Fundamentals
Comparison to Conventional Finance
Case Studies
Islamic Finance as an Alternative System
Discussion
16th World Business Dialogue 130314_WBD_IBF_v01.pptx
15
17. 3 Comparison to Conventional Finance
There are significant differences between Islamic Finance
and conventional Finance
Conventional Banking Islamic Banking
ﻱNo explicit values associated ﻱNormative banking system
ﻱStrong emphasis on debt financing ﻱStrong emphasis on equity financing
ﻱSophisticated product offering ﻱBasic banking service offering
ﻱMaking money from money is possible ﻱTransactions must be tied to real assets
ﻱRisk is shifted/transferred to the client ﻱRisk is shared between bank and client
16th World Business Dialogue 130314_WBD_IBF_v01.pptx
16
18. 3 Comparison to Conventional Finance
The global financial crisis has its roots in a dangerous
mixture of developments in the conventional banking system
Origins of Financial Crisis ﻱShort-term profits as sole
rewarded goal
ﻱNo consideration for other
stakeholders’ objectives
build into compensation
Misaligned
ﻱIncreasingly complex schemes
Incentive Structures
financial engineering ﻱNo regard for system
techniques employed stability encouraged
ﻱRisks separated from actual
underlyings
ﻱEncouraged excessive
lending and risk taking ﻱLooser underwriting and
ﻱDevelopment was not risk management
Uncontrolled standards allowed in
accompanied by similar Erosion of
Financial exchange for short-term
advances in governance Prudency
Innovations gains
processes and risk
management ﻱUncritical and passive
regulators interfering too
late too little to prevent
crisis
Source: Islamic Finance and Global Financial Stability Report (April 2010), Booz & Company analysis
16th World Business Dialogue 130314_WBD_IBF_v01.pptx
17
19. 3 Comparison to Conventional Finance
Islamic banks have proven more resilient during the financial
crisis than conventional banks..
Key Financial Indicators
Performance of Top10 Conventional vs. Top10 Islamic Banks during Crisis
36%
55% Explanations for Superior Performance
9% 24% 36%
Shari’ah principles as outlined above
-9%
-43% require, among other things, prudency due
to risk sharing, prohibit speculation and
-136% limit risks through close links to real
Change in Change in Change Change economy
market net profits in assets in equity Particularly, conventional derivative
capitalization
instruments, a main facilitator for the
emergence of the crisis, are banned
Leverage Ratio
Top10 Conventional vs. Top10 Islamic Banks entirely
16.6x 18.2x Significantly lower leverage ratios reflect
5.8x 6.6x this lower risk appetite and more
conservative business practices of Islamic
banks
2006 2008
Conventional
Islamic
Source: Booz & Company Analysis
16th World Business Dialogue 130314_WBD_IBF_v01.pptx
18
20. 3 Comparison to Conventional Finance
..Islamic equity markets have also survived the financial
crisis better than conventional indexes
Shari’ah Restrictions Performance-Comparison Total Market vs.
Shari‘ah-Compliant Index
Performance
Capital investment and financing restrictions (indexed) Beginning of Financial Crisis
ﻱGeneral prohibition of interest (riba), gambling (maisir) and
uncertainty (gharar)
ﻱRestrictions for capital investments in and financing of certain
industries, e.g.:
ﻱAlcohol fabrication and distribution
ﻱCasinos and hotels (if alcohol is served)
ﻱBanks and insurance companies
ﻱTobacco industry, etc.
Compliance with key financial ratios
ﻱInvestments in businesses that have bonded capital or cash +
interest bearing bonded capital of more than 33% of the market
value of the equity are prohibited
ﻱAccounts payable are not allowed to cross 49% of the market
value of the equity
ﻱRevenues from prohibited industries have to be less than 5% Shari‘ah compliant investments significantly outperformed
conventional ones due to Shari‘ah restrictions
Source: S&P, Dow Jones, Bloomberg, Booz & Company Analysis
16th World Business Dialogue 130314_WBD_IBF_v01.pptx
19
21. Market Overview
Islamic Finance Fundamentals
Comparison to Conventional Finance
Case Studies
Islamic Finance as an Alternative System
Discussion
16th World Business Dialogue 130314_WBD_IBF_v01.pptx
20
22. 4 Case Studies
A typical example for an Islamic financial product is a car
financing according to the so-called Murabahah concept
EXAMPLE
Murabahah-Structure
Vendor Purchaser
1
Transfer of Ownership 2 Purchasing price plus
Purchasing price
profit margin
Islamic Bank
Source: Gassner/Wackerbeck, Islamic Finance 2007
16th World Business Dialogue 130314_WBD_IBF_v01.pptx
21
23. 4 Case Studies
Islamic Mortgage Financing via co-ownership has been
copied by conventional financial instituitions
http://www.youtube.com/v/SmROuXO4lD0 EXAMPLE
16th World Business Dialogue 130314_WBD_IBF_v01.pptx
22
24. 4 Case Studies
Many companies in the GCC countries finance themselves
increasingly Shari‘ah-compliant Islamic bonds
EXAMPLE
Islamic Finance-Strategie Emirates Airlines
Financing Objects Transaction Details Rationale
562 ﻱMio. USD for financing two new ﻱThe Emirates-Management decided
Boeing 777-300 ER airplanes to use Islamic Finance as a strategic
source of financing to help finance
ﻱShari’ah-compliant Leasing over 12
the company‘s growth plan
years
ﻱIn total Emirates have already taken
over 1.3bn USD in Shari‘ah-compliant
loans
ﻱIn 2005 Emirates took a 550 Mio. USD
loan for the construction of their new
headquarters
ﻱFinancing via Islamic bond (Sukuk)
based on a Musharakah-Structure
Nice to know: The German Federal Land Sachsen-Anhalt was 2005 the first western issuer of an
Islamic bond (Sukuk)
16th World Business Dialogue 130314_WBD_IBF_v01.pptx 23
25. Market Overview
Islamic Finance Fundamentals
Comparison to Conventional Finance
Case Studies
Islamic Finance as an Alternative System
Discussion
16th World Business Dialogue 130314_WBD_IBF_v01.pptx
24
26. 5 Islamic Finance as an Alternative System
The Islamic Finance Industry still has many obstacles to
overcome
Growth Constraints in Islamic Finance
ﻱLack of Standardization
ﻱLack of Human Capital
ﻱLack of Money Market Instruments
ﻱLack of Awareness and Trust
ﻱLack of Economies of Scale
ﻱLack of Shari‘ah Scholars
16th World Business Dialogue 130314_WBD_IBF_v01.pptx
25
27. 5 Islamic Finance as an Alternative System
The availability of Shari’ah scholars is one of the most
significant bottlenecks in Islamic Finance
Informal Standardization of Shari’ah Standards
Board Memberships of Top 5 Scholars GCC Network Analysis of Top 15 Scholars’ Board Memberships
Board
Rank Scholar
Memberships
1 Shaikh Nizam Mohammed Saleh Yaquby 77
2 Shaikh Dr. Abdul Satar Abdul Karim Abu Ghuddah 72
3 Dr. Mohammed Eid Elgari 64
4 Sheikh AbdullahSulaiman Al Manee’a 37
4 Dr. Abdulaziz Khalifa Al Qassar 37
ﻱTop 5 out of 176 scholars in the GCC are
members in almost a third (30.1%) of entire
universe of ~956 GCC Board positions
ﻱTop 6 scholars in Kuwait (out of 45) make
48.3% of all (226) Board positions - local
Boards dominated by local scholars
Source: Funds@work, Booz & Company analysis
16th World Business Dialogue 130314_WBD_IBF_v01.pptx
26
28. 5 Islamic Finance as an Alternative System
I believe a number of factors are likely to fuel the growth of
Islamic banking going forward
Key Drivers for Growth in Islamic Finance
Demografic
Financial Inclusion Innovation
Change
Islamic
Demand/ Wealth LOHA
Movements
16th World Business Dialogue 130314_WBD_IBF_v01.pptx
27
29. 5 Islamic Finance as an Alternative System
A great example for innovative business models in Islamic
Finance is the Kuwait Finance House (1/2)
Car Sale in the Kuwait Finance House
16th World Business Dialogue 130314_WBD_IBF_v01.pptx
28
30. 5 Islamic Finance as an Alternative System
A great example for innovative business models in Islamic
Finance is the Kuwait Finance House (2/2)
Positioning of Car Sale Islamic Banking and Takaful-Services
Murabahah-Boxes
Advisory Offices
and Sales Offices
Insurance Counter Cash Register
16th World Business Dialogue 130314_WBD_IBF_v01.pptx
29
31. Market Overview
Islamic Finance Fundamentals
Comparison to Conventional Finance
Case Studies
Islamic Finance as an Alternative System
Discussion
16th World Business Dialogue 130314_WBD_IBF_v01.pptx
30
32. Do you think Religion and Finance should be strictly
separated?
+
16th World Business Dialogue 130314_WBD_IBF_v01.pptx
31
33. Which is the right approach: Trying to prevent financial crises
with regulatory measures or by promoting ethical behavior?
vs.
16th World Business Dialogue 130314_WBD_IBF_v01.pptx
32
34. What do you think about Dr. Tomáš Sedláček’s argument?
Is Islamic Finance a possible solution?
„Our problem is not lack of
growth but too much of it “
Dr. Tomáš Sedláček, Chief
Macroeconomic Strategist
16th World Business Dialogue 130314_WBD_IBF_v01.pptx
33
35. Could Islamic Banking be the next generation of Socially
Responsible Investments?
16th World Business Dialogue 130314_WBD_IBF_v01.pptx
34
36. What role does sustainable economic growth in the MENA
region play for the future of Islamic Finance?
16th World Business Dialogue 130314_WBD_IBF_v01.pptx
35
37. Islamic Banking – Backward Banking or Next Generation
Business Strategy?
or
16th World Business Dialogue 130314_WBD_IBF_v01.pptx
36
39. List of other student conferences
ﻱSouth American Business Forum (SABF) The SABF is an event that takes place annually in Buenos Aires for 3 days in the month of August. Each
year the forum invites 100 outstanding university students from around the globe together with 40 leaders in business, politics and academics.
ﻱHarvard Project for Asian & International Relations (HPAIR) Harvard’s largest annual student connection in Asia: The Harvard Project for
Asian and International Relations creates a forum of exchange and facilitates discussion of the most important economic, political, and social
issues relevant to the Asia-Pacific region. Applications are closed for 2012.
ﻱKairos Global Summit 2013 The Kairos Global Summit in partnership with the United Nations and New York Stock Exchange, brings together
350 innovative and entrepreneurial students from around the world to meet 150 of today’s influential leaders.
ﻱSt. Gallen Symposium The St. Gallen Symposium aims to foster the intergenerational and intercultural dialogue between the Leaders of Today
and the Leaders of Tomorrow. The 43rd symposium will take place from 2nd–3rd May 2013 at the University of St. Gallen.
ﻱInternational Development Conference at Harvard 2013 A yearly student-organized conference dedicated to fostering a constructive dialogue
between leading academics, practitioners, policy makers and students, concerned with creating a better world. Applications will open at the
end of the year.
ﻱUnited Nations International Student Conference Amsterdam 2012 (UNISCA) UNISCA is a Model United Nations (MUN) organised by the
University of Amsterdam. It is a program which consists of a two week long summer course, in which a simulation of an United Nations
Conference takes place.
42 ﻱth International Youth Leadership Conference The one week-long youth forum on world politics, international relations and justice will take
place in Prague. It gives you an opportunity to test your leadership skills, debate current issues, deliver speeches, draft resolutions, make
executive decisions, and experience the complexities of international relations.
ﻱInternational Youth Forum Seliger 2012 1,000 young leaders meet in Russia to build an international youth community based on the principles
of peaceful coexistence, the promotion of personal and democratic liberties and recognition cultural diversity. Applications are closed for
2012.
16th World Business Dialogue 130314_WBD_IBF_v01.pptx
38
40. Contact Information
Kevin Gilhawley
about.me/kevingilhawley
Private: kevin.gilhawley@gmail.com
Aiducation: kevin.gilhawley@aiducation.org
zig: kevin.gilhawley@project21.ch
About :
Kevin Gilhawley is currently interning at the strategy consulting firm Booz & Co. He holds a Bachelor‘s degree in banking and
finance from the University of Zurich. After having worked in the wealth management division of UBS for a few years, he
held different part-time positions in the financial industry. Kevin is also active as a volunteer in sales development in the for-
impact organization Aiducation. In addition, he co-founded the time-sharing platform ZIG in 2012. Kevin’s research focus is
on responsibility in finance and Islamic Finance. He gained first practical experience in Islamic Banking while working with
clients from the GCC countries at UBS. Going forward he is going to intern at Credit Suisse’s IBD and complete his Master‘s
degree in Finance at the London School of Economics thereafter.
16th World Business Dialogue 130314_WBD_IBF_v01.pptx
39