The continued boom in bank products compliant with Islam has spurred plans to set up a new financial institution in Switzerland based on the tenets of the faith. National Bank of Kuwait, one of the Middle East’s largest banks, is planning an Islamic private bank in Switzerland in partnership with a Saudi Arabian institution. The move comes as Islamic banking continues to see strong growth, in defiance of the credit crunch. Industry assets have grown by about 20 per cent to $500bn (€316bn) since last summer, according to Moody’s, the ratings agency. EDITOR’S CHOICE First sovereign Islamic bond listed in London - Mar-19Unease voiced over Islamic bonds - Feb-07Gulf bond issuance could hit $50bn next year - Jan-14Gulf states to stay on trail of foreign companies - Jan-07Dana Gas trims Islamic bond issue - Oct-09Daiwa joins rush to create Shariah funds - Jul-29NBK, the third-largest bank in the Arab world in terms of assets, had already applied for regulatory approval, Ibrahim Dabdoub, chief executive officer told the Financial Times. He declined to name the Saudi bank and said the deal would require approval from Swiss, Kuwaiti and Saudi authorities. The Islamic institution would target high-net worth individuals from the Gulf region, which is currently awash with liquidity as it enjoys an unprecedented oil-fuelled boom. “There is demand, (and) Switzerland is still a haven for people who want to keep money outside,†Mr Dabdoub said. In recent years, Islamic finance – based on a strict interpretation of the Koran that bans the use of interest in transactions – has witnessed a huge expansion with products that are compliant with Islamic law, or sharia, becoming one of the fastest-growth areas of banking in the Arab world. The booming oil price has driven the expansion of Islamic banking as Middle Eastern companies and consumers grow increasingly wealthy, providing profits and business for the world’s biggest Islamic banks. The Gulf economies – which comprise Bahrain, Kuwait, Oman, Saudi Arabia, Qatar and the United Arab Emirates – have more than doubled in size since 2002 as oil prices have risen from $30 a barrel to more than $100. Anouar Hassoune, credit analyst at Moody’s, said: “Oil is creating liquidity and wealth through profits for companies and salaries for individuals. This finds its way through to the banks, whether it is in sharia-compliant personal loans, or from investors wanting to buy sukuk bonds.†Mr Dabdoub said he was hopeful the Islamic bank could move forward before the end of year source : http://www.ft.com/cms/s/0/9bbfce9e-fe8c-11dc-9e04-000077b07658,s01=1.html?nclick_check=1 ************ Islam is moving to Europe more closer
This is really interesting news, thanks for posting it. Anyone interested in economics might want to learn about Islamic banking, it's an alternative system that is not just theory, but has several hundred years of practice behind it. http://en.wikipedia.org/wiki/Islamic_banking .
Countries like the Uk and others in europe are looking towards other financial systems, and the Islamic banking system is the most attractive alternative.
combining islamic financial system and Swiss practice is a great decision to make stable,strong financial system,more over swiss economy base on Gold and metal protections that is "war prove stable-"so I vote for islamic economic and I think they should "change the Islam ,because its not "about "religion here anymore.
My opinion is... How can Islamic Banking system be implemented under the current financial system? The two systems are not compatible. It would provide stability after a while, but first, it would result in a severe contraction & deflation of the economy. Some economists argue that deflation is good. But for the current financial system which depends on continuous injection of fresh credit for economy to keep functioning smoothly, deflation is poisonous.