KUALA LUMPUR: Amid concerns over Malaysia’s escalating household debt and rising property prices, banks have been setting stricter internal valuation guidelines for mortgage loans.
Of late, banks have been said to adopt lower valuations on homes for which mortgages are taken out compared with their transacted prices.
This is not being implemented across the board by banks, but on a case-by-case basis, depending on the property as well as the borrower.
Consumer bankers acknowledge that there has been increased scrutiny of mortgages and sometimes banks end up adopting their own internal valuation on a property rather than the market price, but they add that this is done on a case-by-case basis.
“We are doing a lot more of that today, compared with two years ago. It is not widespread but it is something that we look at more closely nowadays … case-by-case,” said a senior banker with one of the top five local banks.
A senior analyst with a local research outfit noted that the reason for a rise in the practice is because some bankers feel the value of the property could differ from the last transacted price for certain properties.
“For example, they feel that a particular property could be worth RM400,000, but a recent transaction of a similar property is RM500,000. This is not a discount, but bankers are sceptical of the last transacted price. Over the last few months, physical prices have gone up so much and as such, bankers are more stringent on mortgage lending in some cases, so you see this trend happening,” he explained.
“Bankers could use their own valuations. That is a risk for the secondary housing market … buyers won’t face this if the property is bought from the developer,” he added.
HwangDBS Vickers Research banking analyst Lim Sue Lin points out that Singapore banks have been practising this for some time now. “The [Singapore] banks have been basing mortgages on their internal valuations and not on market price,” she explained.
“It is good that bankers are keeping a close eye on mortgage lending and there are results. As you can see, the non-performing ratios have improved … not just for residential properties, but overall non-performing loans (NPL) in general,” she added.
Earlier this month, Bank Negara Malaysia (BNM) announced that a maximum loan-to-value (LTV) ratio of 70% would be applicable to a third-house financing facility taken out by a borrower. This was aimed at supporting a stable and sustainable property market while promoting continued affordability of homes for the general public.
This came about amid a rapid build-up of household debt over the past decade, since the end of the 1997/98 Asian financial crisis. This was partly a result of banks shifting their focus to home mortgages following large corporate failures during the crisis, as well as the lacklustre post-crisis investment climate.
Malaysia’s household debt rose 11.1% a year from 2004 to 2009, pushing the household debt-to-GDP ratio from 66.7% to 76% — the second highest in Asia, after Japan’s 130%.
Despite the rise in household debt, the asset quality of local banks does not appear to have deteriorated.
According to BNM statistics, NPLs for the purchase of residential properties have been declining for the past four months up to August, but picked up slightly in September.
In August, NPLs for the purchase of residential properties stood at RM7.75 billion, which was lower than the RM7.8 billion in July and RM7.88 billion in June. It was RM8.16 billion in May and RM8.22 billion the month before.
However, NPLs for the purchase of residential properties in September inched up to RM7.8 billion from RM7.75 billion a month before, accounting for 26.8% of the banking system’s total NPLs of RM29.07 billion.
Incidentally, this ratio is similar to the 27% share of total bank loans that went towards residential properties.
Even so, September’s NPLs for residential properties are down 24% year-on-year, from RM10.3 billion in September 2009.
The asset quality of the overall banking sector has also improved.
Overall, the net NPL ratio improved to 2% in September compared with 2.1% in August and July, respectively, and 2.2% in June.
(Source: The Edge Online)
Tuesday, November 23, 2010
Monday, November 22, 2010
Sukuk Drop Most Since May as Ireland Crisis Deters Funds: Islamic Finance
Islamic bonds slumped last week by the most since May as Ireland sought aid to shore up its banking system, reducing demand for the yield premium available on sukuk and damping the outlook for new sales.
According to the HSBC/NASDAQ Dubai US Dollar Sukuk Index, the average yields climbed 22 basis points to 4.88 percent. Trading Volumes declines, as the holiday in the Persian Gulf from Nov. 15 to Nov. 18 to celebrate for the Muslim festival of Eid-al-Adha.
Sales of Islamic bonds, which pay asset returns to comply with the religion’s ban on interest, slumped this year due to debt restructurings and falling property prices in the Middle East.
Concerns on Europe’s debt and emerging markets have generally been affected by the slumped.
According to the HSBC/NASDAQ Dubai US Dollar Sukuk Index, the difference between the average yield for sukuk and the London interbank offered rate widened 8 basis points last week to 341 basis points, which the most since the week ended Oct. 22.
Based on the data compiled by Bloomberg, total sales of Islamic bonds dropped 29 percent to $13.7 billion this year. Sales of ringgit-denominated sukuk in Malaysia, the world’s biggest market for sukuk, fell 31 percent to 21.4 billion ringgit ($6.9 billion). Offerings from the six-nation Gulf Cooperation Council declined 36 percent to $3.97 billion.
(Source: Bloomberg)
According to the HSBC/NASDAQ Dubai US Dollar Sukuk Index, the average yields climbed 22 basis points to 4.88 percent. Trading Volumes declines, as the holiday in the Persian Gulf from Nov. 15 to Nov. 18 to celebrate for the Muslim festival of Eid-al-Adha.
Sales of Islamic bonds, which pay asset returns to comply with the religion’s ban on interest, slumped this year due to debt restructurings and falling property prices in the Middle East.
Concerns on Europe’s debt and emerging markets have generally been affected by the slumped.
According to the HSBC/NASDAQ Dubai US Dollar Sukuk Index, the difference between the average yield for sukuk and the London interbank offered rate widened 8 basis points last week to 341 basis points, which the most since the week ended Oct. 22.
Based on the data compiled by Bloomberg, total sales of Islamic bonds dropped 29 percent to $13.7 billion this year. Sales of ringgit-denominated sukuk in Malaysia, the world’s biggest market for sukuk, fell 31 percent to 21.4 billion ringgit ($6.9 billion). Offerings from the six-nation Gulf Cooperation Council declined 36 percent to $3.97 billion.
(Source: Bloomberg)
Japan, Malaysia, Taiwan, Thailand: Asia Bonds, Currency Preview
Nov. 22 - The following events and economic reports may influence trading in Asia’s local bonds and currencies today. Bond yields and exchange rates are from the previous trading session unless stated otherwise.
Japan: Chief Cabinet Secretary Yoshito Sengoku will hold media briefings at 11 a.m. and 4 p.m. in Tokyo.
The yield on the 1 percent government bond due September 2020 was 1.070 percent, according to Japan Bond Trading Co., the nation’s largest interdealer debt broker.
The yen traded at 83.50 per dollar at 7:06 a.m. in Tokyo.
Malaysia: The central bank will say gross domestic product rose 5.9 percent in the third quarter from a year earlier, slowing from an 8.9 percent gain in the three months to June 30period, according to a Bloomberg survey.
Bank Negara will sell a combined 2 billion ringgit ($641 million) of 210- and 364-day notes and 500 million ringgit of 119-day Islamic notes.
The yield on the 3.835 percent note due August 2015 was 3.25 percent, according to Bursa Malaysia. The ringgit was at 3.116.
Singapore: Singapore will sell 91-day Treasury bills. The yield on the 3.25 percent bond due September 2020 was 2.12 percent. The Singapore dollar was at S$1.2962.
South Korea: The Ministry of Strategy and Finance will sell 600 billion won ($530 million) of 20-year bonds.
The yield on the 3.75 percent debt due June 2013 was 3.30 percent. The won was at 1,133.65 per dollar.
Taiwan: The statistics bureau will say the unemployment rate fell to 5.04 percent in October from 5.08 percent a month earlier, according to economists surveyed by Bloomberg.
The yield on the 1.125 percent note due in September 2020 was 1.36 percent. The Taiwan dollar was at NT$30.673.
Thailand: The government will say the economy grew at an annual pace of 7.2 percent in the third quarter from a year earlier after having expanded 9.1 percent in the preceding three months, according to economists in a Bloomberg survey.
The Bank of Thailand will sell a combined 3 billion baht ($100 million) of 28-, 91- and 182-day bills.
The yield on the 5.85 percent note due March 2021 was 3.61 percent. The baht was at 29.94.
(Source: Bloomberg)
Japan: Chief Cabinet Secretary Yoshito Sengoku will hold media briefings at 11 a.m. and 4 p.m. in Tokyo.
The yield on the 1 percent government bond due September 2020 was 1.070 percent, according to Japan Bond Trading Co., the nation’s largest interdealer debt broker.
The yen traded at 83.50 per dollar at 7:06 a.m. in Tokyo.
Malaysia: The central bank will say gross domestic product rose 5.9 percent in the third quarter from a year earlier, slowing from an 8.9 percent gain in the three months to June 30period, according to a Bloomberg survey.
Bank Negara will sell a combined 2 billion ringgit ($641 million) of 210- and 364-day notes and 500 million ringgit of 119-day Islamic notes.
The yield on the 3.835 percent note due August 2015 was 3.25 percent, according to Bursa Malaysia. The ringgit was at 3.116.
Singapore: Singapore will sell 91-day Treasury bills. The yield on the 3.25 percent bond due September 2020 was 2.12 percent. The Singapore dollar was at S$1.2962.
South Korea: The Ministry of Strategy and Finance will sell 600 billion won ($530 million) of 20-year bonds.
The yield on the 3.75 percent debt due June 2013 was 3.30 percent. The won was at 1,133.65 per dollar.
Taiwan: The statistics bureau will say the unemployment rate fell to 5.04 percent in October from 5.08 percent a month earlier, according to economists surveyed by Bloomberg.
The yield on the 1.125 percent note due in September 2020 was 1.36 percent. The Taiwan dollar was at NT$30.673.
Thailand: The government will say the economy grew at an annual pace of 7.2 percent in the third quarter from a year earlier after having expanded 9.1 percent in the preceding three months, according to economists in a Bloomberg survey.
The Bank of Thailand will sell a combined 3 billion baht ($100 million) of 28-, 91- and 182-day bills.
The yield on the 5.85 percent note due March 2021 was 3.61 percent. The baht was at 29.94.
(Source: Bloomberg)
Friday, November 19, 2010
AmInvestment targets more assets
AmInvestment Bank Group targets to increase its assets under management to RM25bil next year from about RM22.3bil as at end-October.
Its Chief executive officer Datin Maznah Mahbob has mentioned that the funds management division had set to grow its assets by at least 23% annually for the next five years.
To date, it has managed 58 conventional and Islamic unit trust funds.
And for this year, the division launched 12 funds and may introduce about the same number next year.
They also plan to launch a few more Islamic products and equities funds in 2011after the launch of its AmIslamic Greater China fund here yesterday.
According to AmInvestment Bank retail funds director (fund management division) Ng Chze How, with an initial fund size of RM100mil, the newly-launched fund is expected to generate a double-digit return in the long term, which is supported by stronger growth in Greater China compared with other developed markets.
As China has emerged as the preferred investment destination due to its strong growth of between 9.5% and 10% in the last two decades. And even during the slowdown, China still maintained the same numbers and we are bullish about its market outlook.
The multi-currency fund has an initial offer period of 21 days until Nov 28 and retails for US$0.20 per unit.
Initial investment for the scheme is pegged at RM1,000 for ringgit investors while for other investors, the amount is US$500 or the nearest equivalent in any dealing currency.
(Source: The Star Online)
Its Chief executive officer Datin Maznah Mahbob has mentioned that the funds management division had set to grow its assets by at least 23% annually for the next five years.
To date, it has managed 58 conventional and Islamic unit trust funds.
And for this year, the division launched 12 funds and may introduce about the same number next year.
They also plan to launch a few more Islamic products and equities funds in 2011after the launch of its AmIslamic Greater China fund here yesterday.
According to AmInvestment Bank retail funds director (fund management division) Ng Chze How, with an initial fund size of RM100mil, the newly-launched fund is expected to generate a double-digit return in the long term, which is supported by stronger growth in Greater China compared with other developed markets.
As China has emerged as the preferred investment destination due to its strong growth of between 9.5% and 10% in the last two decades. And even during the slowdown, China still maintained the same numbers and we are bullish about its market outlook.
The multi-currency fund has an initial offer period of 21 days until Nov 28 and retails for US$0.20 per unit.
Initial investment for the scheme is pegged at RM1,000 for ringgit investors while for other investors, the amount is US$500 or the nearest equivalent in any dealing currency.
(Source: The Star Online)
Thursday, November 18, 2010
Banks wage credit card wars
Credit card users have cancelled off their credit card after the government imposed RM50 tax for its principal card and RM25 for a supplementary card this year.
According to data from the Finance Ministry, as of Sept 30, there were 8.7 million credit cards, comprising 7.7 million principal cards and one million supplementary cards in circulation.
It is a huge drop from the 10.8 million credit cards at the end of last year. Due to the drastic dropped, banks are now busy offering rewards and giving out cash to win back their prospective clients.
For example, Maybank offered a customer, who cancelled his credit card in June, 10,000 reward points to reactivate his card last month. Thus the 10,000 reward points then will be used to offset the RM50 tax.
As for Standard Chartered, it is said they offering a cashback scheme to successful applicants to their gold and platinum credit cards. The promotion is believed to run until Jan 31 next year. Based on this scheme, Gold card holders would have RM88 credited into their account, while platinum card holders would get RM188 credited.
Citibank’s PremierMiles credit card members would get an extra 15% Enrich Miles points when they redeem their reward points for frequent flyer miles in a promotion until Dec 31.
Whereas,other banks also have increased the amount of cash rebates, or devised a usage bonus scheme to offset the RM50.
(Source: The Star Online)
According to data from the Finance Ministry, as of Sept 30, there were 8.7 million credit cards, comprising 7.7 million principal cards and one million supplementary cards in circulation.
It is a huge drop from the 10.8 million credit cards at the end of last year. Due to the drastic dropped, banks are now busy offering rewards and giving out cash to win back their prospective clients.
For example, Maybank offered a customer, who cancelled his credit card in June, 10,000 reward points to reactivate his card last month. Thus the 10,000 reward points then will be used to offset the RM50 tax.
As for Standard Chartered, it is said they offering a cashback scheme to successful applicants to their gold and platinum credit cards. The promotion is believed to run until Jan 31 next year. Based on this scheme, Gold card holders would have RM88 credited into their account, while platinum card holders would get RM188 credited.
Citibank’s PremierMiles credit card members would get an extra 15% Enrich Miles points when they redeem their reward points for frequent flyer miles in a promotion until Dec 31.
Whereas,other banks also have increased the amount of cash rebates, or devised a usage bonus scheme to offset the RM50.
(Source: The Star Online)
Global sukuk issuance next year may surpass 2007’s record US$34bil
The global sukuk issuance next year may supersede the all-time high of US$34.2bil recorded in 2007 based on an uptrend seen this year and the recovery in the global economy.
Amanie Business Solutions consultant Baiza Bain said the sukuk issuance this year was expected to be about US$30bil. He said the last few issuances had been oversubscribed and a similar trend was expected next year.
“The credit market now is much more at ease and there is a lot of interest from investors. Next year, sukuk issuance could be more than the figure quoted for 2007 but this depends on the global economic environment and also the US economy as well as the stability of its currency.
“The bulk of the sukuk issuance in 2007 was in US dollar. Some corporations are reluctant to issue sukuk now due to the fluctuation of the dollar. If the dollar stabilises next year, we’ll see a lot more issuance,” he told a press briefing on the upcoming International Shariah Investment Convention yesterday.
Worldwide sukuk issuance in 2009 stood at US$23bil, up from US$19bil in 2008.
Amanie president and chief executive officer Dr Mohd Daud Bakar (pic) said elements of structured products were now being incorporated into sukuk as it helped render capital projection and certainty of return to investors.
“We expect this new trend in sukuk structuring to attract more investors. We have seen a couple of sukuk issuances using this new method this year,” he said.
Mohd Daud believed that renewed activity in the sukuk market would be the catalyst for the next cycle of growth, citing the recent US$200mil Islamic bond sale by Dubai-based Al Baraka Banking Group.
Organised by Amanie, the Securities Commission and Bursa Malaysia, the International Syariah Investment Convention will be held from Nov 30 to Dec 1 in Kuala Lumpur.
Local and international participants from regulatory bodies, fund management houses and investors will discuss key issues such as establishing proper cross border distribution channels for funds and continued expansion for the sukuk market.
(Source: The Star Online)
Amanie Business Solutions consultant Baiza Bain said the sukuk issuance this year was expected to be about US$30bil. He said the last few issuances had been oversubscribed and a similar trend was expected next year.
“The credit market now is much more at ease and there is a lot of interest from investors. Next year, sukuk issuance could be more than the figure quoted for 2007 but this depends on the global economic environment and also the US economy as well as the stability of its currency.
“The bulk of the sukuk issuance in 2007 was in US dollar. Some corporations are reluctant to issue sukuk now due to the fluctuation of the dollar. If the dollar stabilises next year, we’ll see a lot more issuance,” he told a press briefing on the upcoming International Shariah Investment Convention yesterday.
Worldwide sukuk issuance in 2009 stood at US$23bil, up from US$19bil in 2008.
Amanie president and chief executive officer Dr Mohd Daud Bakar (pic) said elements of structured products were now being incorporated into sukuk as it helped render capital projection and certainty of return to investors.
“We expect this new trend in sukuk structuring to attract more investors. We have seen a couple of sukuk issuances using this new method this year,” he said.
Mohd Daud believed that renewed activity in the sukuk market would be the catalyst for the next cycle of growth, citing the recent US$200mil Islamic bond sale by Dubai-based Al Baraka Banking Group.
Organised by Amanie, the Securities Commission and Bursa Malaysia, the International Syariah Investment Convention will be held from Nov 30 to Dec 1 in Kuala Lumpur.
Local and international participants from regulatory bodies, fund management houses and investors will discuss key issues such as establishing proper cross border distribution channels for funds and continued expansion for the sukuk market.
(Source: The Star Online)
Tuesday, November 16, 2010
Untapped $105 Billion Endowments May Boost Shariah Funds: Islamic Finance
Managers of Islamic endowments with $105 billion in assets are seeking to diversify out of bank deposits, providing Shariah-compliant funds with the chance to capture new business, Ernst & Young LLP says.
These “largely untapped” endowments, or awqaf, have as much as $40 billion of cash parked at commercial banks, Ashar Nazim, Manama-based executive director and head of Islamic financial services for Ernst & Young, Bahrain, said in a telephone interview Nov. 9. Awaqf typically consists of cash or assets, including land and buildings, donated by individuals or institutions for charitable and religious purposes.
According to Ernst & Young in its Islamic Funds & Investment Report published in May. Assets held by Islamic funds have stagnated at around $52 billion since 2008. The combined wealth of the Middle East’s more than 400,000 millionaires grew 5.1 percent in 2009 to $1.5 trillion, Cap Gemini SA and Bank of America Corp.’s Merrill Lynch unit said in June.
Property Slump
Real-estate prices have tumbled more than 50 percent since their 2008 peak in Dubai and 30 percent in neighboring Abu Dhabi as banks tightened mortgage lending and speculators fled the market. Property is used as collateral for Shariah-compliant bonds, which are backed by assets and pay a share of profit instead of interest.
“The demise of real estate in the global market has woken a lot of people up,” Raza said. “For the awqaf, a long-term investment meant real estate, but as more and more products are realized in the Gulf region, more longer-dated sukuk and sukuk funds, you’ll start seeing the diversification from the endowment fund perspective.”
Global sales of Islamic bonds fell 29 percent to $13.7 billion this year from the same period in 2009, according to data compiled by Bloomberg.
Shariah-compliant bonds returned 12 percent this year, according to the HSBC/NASDAQ Dubai US Dollar Sukuk Index, compared with a 15.5 percent gain in developing markets, JPMorgan Chase & Co.’s EMBI Global Diversified Index shows.
Markets in Bahrain, the United Arab Emirates, Dubai, Kuwait and Qatar are closed Nov. 16-18 for the Eid Al-Adha holidays, Nov. 16-17 in Saudia Arabia and Nov. 17 in Malaysia.
Bahrain’s Research
As much as 80 percent of assets owned by Islamic endowments are donated real estate, Ernst & Young’s Nazim said. Islamic mutual funds account for 5.5 percent of the estimated $939 billion Shariah-compliant industry, according to the company’s May report.
“These are prime properties, with huge scope for enhancing value through professional investment management of the portfolio,” Nazim said. “While awqaf institutions have been successful in mobilizing donors’ money and disbursing it for the defined causes, they typically don’t possess asset management capabilities.”
Bahrain’s Waqf Fund, started in 2006 with $4.6 million from the central bank and Islamic financial institutions, provides money for training and research on the industry, according to the bank’s website.
Malaysian Program
Maybank Islamic, the Shariah-compliant unit of Malaysia’s largest lender, started a awaqf program in July that will allow Muslims to make religious donations through the bank, Abdul Wahid Omar, chief executive officer of Malayan Banking Bhd., said on Aug. 20. Maybank Islamic will then work with awaqf to manage the funds, he said.
The yield on Malaysia’s 3.928 percent Islamic note due in June 2015 climbed 12 basis points today to 2.79 percent, according to prices provided by Royal Bank of Scotland Group. The extra yield investors demand to hold Dubai’s government sukuk rather than Malaysia’s was little changed at 368, according to data compiled by Bloomberg.
The difference between the average yield for sukuk and the London interbank offered rate widened 1.5 basis points to 333 points on Nov. 12, according to the HSBC/NASDAQ Dubai US Dollar Sukuk Index.
“Any kind of infusion of new opportunities, whether it’s in the form of cash or human resources, that’s significant for the industry,” Shaykh Yusuf Talal DeLorenzo, Dubai-based chief Shariah officer and board member of Shariah Capital Inc., said in an interview in Dubai on Nov. 11. “Asset managers really haven’t had the opportunities to interface and work” with endowment institutions.
(Source: Bloomberg)
These “largely untapped” endowments, or awqaf, have as much as $40 billion of cash parked at commercial banks, Ashar Nazim, Manama-based executive director and head of Islamic financial services for Ernst & Young, Bahrain, said in a telephone interview Nov. 9. Awaqf typically consists of cash or assets, including land and buildings, donated by individuals or institutions for charitable and religious purposes.
According to Ernst & Young in its Islamic Funds & Investment Report published in May. Assets held by Islamic funds have stagnated at around $52 billion since 2008. The combined wealth of the Middle East’s more than 400,000 millionaires grew 5.1 percent in 2009 to $1.5 trillion, Cap Gemini SA and Bank of America Corp.’s Merrill Lynch unit said in June.
Property Slump
Real-estate prices have tumbled more than 50 percent since their 2008 peak in Dubai and 30 percent in neighboring Abu Dhabi as banks tightened mortgage lending and speculators fled the market. Property is used as collateral for Shariah-compliant bonds, which are backed by assets and pay a share of profit instead of interest.
“The demise of real estate in the global market has woken a lot of people up,” Raza said. “For the awqaf, a long-term investment meant real estate, but as more and more products are realized in the Gulf region, more longer-dated sukuk and sukuk funds, you’ll start seeing the diversification from the endowment fund perspective.”
Global sales of Islamic bonds fell 29 percent to $13.7 billion this year from the same period in 2009, according to data compiled by Bloomberg.
Shariah-compliant bonds returned 12 percent this year, according to the HSBC/NASDAQ Dubai US Dollar Sukuk Index, compared with a 15.5 percent gain in developing markets, JPMorgan Chase & Co.’s EMBI Global Diversified Index shows.
Markets in Bahrain, the United Arab Emirates, Dubai, Kuwait and Qatar are closed Nov. 16-18 for the Eid Al-Adha holidays, Nov. 16-17 in Saudia Arabia and Nov. 17 in Malaysia.
Bahrain’s Research
As much as 80 percent of assets owned by Islamic endowments are donated real estate, Ernst & Young’s Nazim said. Islamic mutual funds account for 5.5 percent of the estimated $939 billion Shariah-compliant industry, according to the company’s May report.
“These are prime properties, with huge scope for enhancing value through professional investment management of the portfolio,” Nazim said. “While awqaf institutions have been successful in mobilizing donors’ money and disbursing it for the defined causes, they typically don’t possess asset management capabilities.”
Bahrain’s Waqf Fund, started in 2006 with $4.6 million from the central bank and Islamic financial institutions, provides money for training and research on the industry, according to the bank’s website.
Malaysian Program
Maybank Islamic, the Shariah-compliant unit of Malaysia’s largest lender, started a awaqf program in July that will allow Muslims to make religious donations through the bank, Abdul Wahid Omar, chief executive officer of Malayan Banking Bhd., said on Aug. 20. Maybank Islamic will then work with awaqf to manage the funds, he said.
The yield on Malaysia’s 3.928 percent Islamic note due in June 2015 climbed 12 basis points today to 2.79 percent, according to prices provided by Royal Bank of Scotland Group. The extra yield investors demand to hold Dubai’s government sukuk rather than Malaysia’s was little changed at 368, according to data compiled by Bloomberg.
The difference between the average yield for sukuk and the London interbank offered rate widened 1.5 basis points to 333 points on Nov. 12, according to the HSBC/NASDAQ Dubai US Dollar Sukuk Index.
“Any kind of infusion of new opportunities, whether it’s in the form of cash or human resources, that’s significant for the industry,” Shaykh Yusuf Talal DeLorenzo, Dubai-based chief Shariah officer and board member of Shariah Capital Inc., said in an interview in Dubai on Nov. 11. “Asset managers really haven’t had the opportunities to interface and work” with endowment institutions.
(Source: Bloomberg)
Joint takaful licence for Public Bank, ING
Bank Negara has approved the joint application by Public Bank Bhd (PBB), Public Islamic Bank Bhd (PIBB) and ING Management Holdings (M) Sdn Bhd for a family takaful licence.
In a joint statement, the three companies said they would set up a joint-venture (JV) company to carry out the family takaful business, with ING holding a 60% equity stake, PBB 20% and PIBB 20%.
The JV company is targeted to be fully operational by the first half of 2011. According to the statement, it was envisaged to be a leading family takaful provider with 15,000 agents in the long term.
“The takaful products will be promoted via the multi-distribution channel of tied agency, bancatakaful and employee benefits which currently exists in ING and the PBB group,” the companies said.
ING and the PBB group began their 10-year strategic bancassurance alliance in 2008. “Together, they have become the fastest growing bancassurance provider in the country,” the statement said.
ING Insurance Bhd has over 1.5 million customers nationwide and total assets worth RM12.4bil as at end-2009. (Source: The Star -Business)
In a joint statement, the three companies said they would set up a joint-venture (JV) company to carry out the family takaful business, with ING holding a 60% equity stake, PBB 20% and PIBB 20%.
The JV company is targeted to be fully operational by the first half of 2011. According to the statement, it was envisaged to be a leading family takaful provider with 15,000 agents in the long term.
“The takaful products will be promoted via the multi-distribution channel of tied agency, bancatakaful and employee benefits which currently exists in ING and the PBB group,” the companies said.
ING and the PBB group began their 10-year strategic bancassurance alliance in 2008. “Together, they have become the fastest growing bancassurance provider in the country,” the statement said.
ING Insurance Bhd has over 1.5 million customers nationwide and total assets worth RM12.4bil as at end-2009. (Source: The Star -Business)
Thursday, November 4, 2010
Base Lending Rate (BLR) - Rates last refreshed on 17 Sept 2010
| No. | Banking Institution | Effective Fr. | BLR (% p.a.) |
| 1 | Affin Bank Berhad | 13/07/2010 | 6.30 |
| 2 | Alliance Bank Malaysia Berhad | 13/07/2010 | 6.30 |
| 3 | AmBank (M) Berhad | 13/07/2010 | 6.30 |
| 4 | Bangkok Bank Berhad | 14/07/2010 | 6.30 |
| 5 | Bank of America Malaysia Berhad | 13/07/2010 | 6.30 |
| 6 | Bank of China (Malaysia) Berhad | 14/07/2010 | 6.30 |
| 7 | Bank of Tokyo-Mitsubishi UFJ (Malaysia) | 14/07/2010 | 6.00 |
| 8 | CIMB Bank Berhad | 13/07/2010 | 6.30 |
| 9 | Citibank Berhad | 13/07/2010 | 6.30 |
| 10 | Deutsche Bank (Malaysia) Berhad | 15/07/2010 | 6.30 |
| 11 | EON Bank Berhad | 14/07/2010 | 6.30 |
| 12 | Hong Leong Bank Berhad | 14/07/2010 | 6.30 |
| 13 | HSBC Bank Malaysia Berhad | 13/07/2010 | 6.30 |
| 14 | J.P. Morgan Chase Bank Berhad | 15/07/2010 | 6.20 |
| 15 | Malayan Banking Berhad | 13/07/2010 | 6.30 |
| 16 | OCBC Bank (Malaysia) Berhad | 13/07/2010 | 6.30 |
| 17 | Public Bank Berhad | 13/07/2010 | 6.30 |
| 18 | RHB Bank Berhad | 13/07/2010 | 6.30 |
| 19 | Standard Chartered Bank Malaysia Berhad | 13/07/2010 | 6.30 |
| 20 | The Bank of Nova Scotia Berhad | 14/07/2010 | 6.30 |
| 21 | The Royal Bank of Scotland Berhad | 15/07/2010 | 6.00 |
| 22 | United Overseas Bank (Malaysia) Berhad | 13/07/2010 | 6.30 |
Source : Bank Negara Malaysia
Rates changed since 13/07/2010
Rates updated on 17/09/2010
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