First Published: 2009-11-05

 
Islamic banks weather economic storm
 

Banks that comply with Islamic Sharia law thriving due to 'conservative approach to risk'.

 

Middle East Online

'Solid track record'

LONDON - Banks that comply with Islamic Sharia law are thriving despite the global financial crisis, thanks largely to a "conservative approach to risk," according to a new listing published Thursday.

The latest research by The Banker magazine reveals that assets held by fully Sharia-compliant banks or the Islamic units of conventional banks rose by 28.6 percent to 822 billion dollars (550 billion euros) in 2009, up from 639 billion dollars (430 billion euros) in 2008.

This contrasts sharply with the stagnation in the conventional banking sector. The Banker's survey of the top 1,000 world banks published in July showed annual asset growth of just 6.8 percent.

"A conservative approach to risk and close links between the financial sector and real assets has helped shield the sector from the worst of the credit crisis," said the magazine's editor, Brian Caplen.

The Banker said the Islamic finance industry was building a "solid track record," with a compound annual growth rate for 2006-2009 of 27.86 percent, and forecast assets would hit 1,033 billion dollars in 2010.

The 2009 Top 500 Islamic Financial Institutions appears in November's edition of The Banker.

 

Yemen warring parties back to peace talks table

UN envoy in Moscow to save Syrian truce

Iraq reform process in limbo after Green Zone storming

US soldier feared killed in Iraq’s Kurdistan

Saudi Minister 'not satisfied' with level of female employment

OPCW warns ISIS may be making chemical weapons

French court says 'Carlos the Jackal' must face trial for 1974 attack

UN demands protection of hospitals in armed conflicts

Jewish settler who led burning alive of Palestinian teen receives life sentence

Italy ready to raise shipwreck off Libya coast

Heavy airstrikes kill dozens in ISIS Syria bastion

Deadly intra-rebel clashes rock eastern part of Syria capital

German 'jihadist' goes on trial for Syria war crimes

Number of people held in solitary confinement doubles in Israel

UN fears operation near Mosul will displace 30,000 more Iraqis

Turkey Nobel Laureate shows solidarity with veteran writer, Murat Belge

Russian FM hopes for Aleppo ceasefire in 'next few hours'

Israel Labour mulls break with British party over anti-Semitism claims

Saudi to ensure Binladin Group resolves wage issues

Tens of thousands of Shiite pilgrims flock to Baghdad shrine

EU set to grant Turkey visa-free travel in migrant deal

Syria rebels strike hospital in regime-held Aleppo

Israel destroys home of Palestinian suspect's family

Saudi women to get copy of marriage contracts

UN envoy seeks to restart Yemen peace talks

EU praises Turkey efforts to meet criteria for visa deal

Sudan claims 'sovereign rights' in dispute with Egypt

Amnesty denounces ‘shocking’ conditions in Iraq detention centre

Carnage in Iraq as deadly car bomb targets Shiite pilgrims

PKK attack kills at least one soldier in southeast Turkey

Turkey pounds ISIS positions in Syria

Five years on, bin Laden doctor languishes in jail

Top Sudan court lifts ban on leading newspaper

Iran to grant citizenship to families of killed foreign recruits

Egypt journalists hold sit-in after police raid of press syndicate

US in desperate bid to salvage Syria ceasefire

Iraq protesters quit Green Zone after unprecedented breach

Up to 100 people missing in two Mediterranean shipwrecks

Aden police chief survives new assassination attempt

ISIS claims rare deadly bombings in southern Iraq

Tight security marks world rallies to celebrate Labour Day

Yemen government suspends 'direct' talks with rebels

Russia, US in bids to freeze fighting in Syria's Aleppo

Deadly car bomb hits Turkey refugee hub near Syria border

Iraq PM calls for punishment of protesters involved in violence