Monday, November 12, 2007

Islamic banks demand sukuk bonds

from The News (Pakistan)

Financial sector stakeholders have urged the Ministry of Finance to expedite efforts for the issuance of Islamic Sukuk bonds or Sharia-compliant treasury bills in the shape of Baitul Maal (bank) certificates to provide the Islamic banks an opportunity to invest in government securities. These views were expressed by Islamic banking stakeholders while speaking on the second day of the 3rd World Asia Islamic Capital Conference on Thursday. They said Islamic banks were facing difficulty in managing liquidity in the absence of such instruments and Islamic banks were at a disadvantage compared to conventional banks in terms of optimising returns on excess liquidity ... Speaking at a session on emergence of ‘takaful’ (Islamic Insurance) in the country, the experts said that 63% Islamic banking and takaful consumers in Malaysia were non-Muslims, which showed the benefits for consumers available in Islamic mode of finance. Pak-Qatar Family Takaful CEO Pervaiz Ahmad emphasized the need of synergy in Islamic banks and takaful companies and underlined low insurance penetration in Pakistan as compared to India.

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