BANKING - Hungary hungry for IF - Kuveyt Turk present

Hungary's first Islamic bank is on its way, says Istvan Kaknics-Ujhelyi, director of Hungary's Al-Gharnati Foundation and advisor to the mayor of the northern city of Eger. Hosszu Ferenc Ali Hasszan, a Hungarian currently undergoing Islamic banking training in Malaysia, told The Islamic Globe that Hungary is working towards opening its first fully functional Shari'ah compliant bank, called Magyar Iszlam Bank in the coming years.(source)

BANKING - KFH-Turkey takes part in ‘Dialogue with Europe’

Kuwait Finance House-Turkey CEO Ufuk iwan stressed that the Islamic banking industry has reinforced its competitiveness during the economic crisis, and that Islamic banks were less vulnerable to the impact of the crisis that their traditional counterparts, since they deal in real products instead of relying on offering loans. (source)

Turkey - Factors to Watch on June 10

KUVEYT TURK

The lender plans to sell a five-year sukuk worth $350 million in September or October, Dunya newspaper cited CEO of Kuveyt Turk Ufuk Uyan.(source)

CAPITAL MARKETS - Fragile sukuk market clamors for sovereign issuances (Turkey, Kuveyt Turk, Albaraka Turk)

The talk is big, but are potential sukuk originators walking the walk? Depending on who you speak to, the picture is mixed, marked on the other hand by the "irrational" exuberance and ambition of potential issuers, many of whom do not get near to an offering, and on the other hand those who are skeptical and indifferent based on an erroneous belief that sukuk origination is always more expensive than conventional bonds and is further complicated by the Shariah compliance requirement.

The real potential probably lies in between where issuers genuinely see sukuk as an attractive and competitive alternative way of raising funds and therefore a tool to diversify sources of funding. They would however go to the market only when the timing and the pricing is right. Such an issuance in question is the proposed issuance which is expected to be closed this week. (full story - arab news)

BANKING - Turkey draws closer to MENA

The Turkish economy has now re-aligned itself more closely to the regional markets in the GCC and MENA countries.

Whichever party wins the Turkish general election in June this year, one thing remains certain. Turkey's participation banking sector will continue its steady progress and, in the process, further consolidate the sector as the third major component in the Turkish financial system after the depository (conventional commercial deposit-taking) banks and the development and investment banks. Participation banking is the Turkish euphemism for interest-free profit-and-loss-sharing banking - in other words Islamic banking. Its importance is underlined by the fact that it has  flourished since its establishment in 1983 by a special decree introduced by the military regime of President Kenan Evren, and more recently it has undergone a successful transformation that has seen it become part of the mainstream banking industry following its licensing, regulation and supervision under the same provisions of the general 2007 Turkish Banking act (amended). (full story)

BANKING - Kuveyt Türk Holds Its Twenty Third Regular General Assembly

Kuveyt Türk concluded its twenty third Regular General Assembly with a meeting in which members of the Board of Directors, Chief Executive Officer Ufuk Uyan and Kuveyt Türk partners were in attendance. The meeting began with Kuveyt Türk Chief Executive Officer Ufuk Uyan’s presentation of the agenda, after which participants were informed about the 2010 Annual Report and annual financial statement. (full story)

BANKING - Central Bank policies hurting Islamic lenders

Ufuk Uyan

Ufuk Uyan, general manager of Kuveyt Turk has told The Islamic Globe: “I believe non-interest banking will enter a new period of healthy growth worldwide, shrugging off the indirect effects of the global crisis.”

Uyan argued that global Islamic banking had sidestepped the worst of the financial crisis as it does not deal with complex derivative products or packaging and reselling of debt. (full story)

BANKING - Kuveyt Türk benefits from Turks’ love of gold

After more than a year of work, Kuveyt Türk started offering 

gold from the ATM at its Turkish headquarters on March 22. AA photo

 

Successive Turkish governments have tried in vain to put the tons of gold ‘under the pillows’ of citizens into the financial system, but all have failed. However, participation bank Kuveyt Türk seems to have managed to convince thousands of its customers to so, and its market share in gold banking is surging. Speaking to the Hürriyet Daily News, General Manager Ufuk Uyan says the lender basically ‘filled a void’ (full story)

AWARDS - Finance magazine grants two awards to Turkish participation bank

Euromoney, a prominent finance magazine, has given two awards to a Turkish participation bank, the director general of the bank said Wednesday.

Kuveyt Türk Director General Ufuk Uyan said Euromoney had honored the bank with two awards, including "best sukuk house" and "most innovative deal" awards for 2011. (source)

BANKING - CAPITAL MARKETS - ETFs continue to make inroads

LONDON: Islamic exchange-traded funds (ETFs) continue to make slow but steady market penetration with the recent launch of a gold-based ETF, GoldPlus, launched in Istanbul by Kuveyt Turk Participation Bank, in which Kuwait Finance House has a controlling 62 percent equity state, and the imminent launch by BNP Paribas Investment Partners of its second Islamic ETF, part of its Easy ETF range, which will be listed on Bursa Malaysia.