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When twined by conventional bank of problem of effect
finance crisis, Islamic of Bank Britain
( IBB) oppositely;also client floods. According to IBB,
since finance crisis knock over the conventional banking
industry, sum up the client IBB mount equal to five gratuity,
inclusive of client of sector to expense which go up
to become 13 gratuity. Among that new client,
a lot of client non-Muslim

Commercial Director of IBB, Sultan Choudhury tell the,
people nowadays change over to bank Islami of because
bank base on the Islam own the better protection
from credit influence stuck which in this time befall
the conventional bank. IBB, add the Choudhury,do not
take the loan base on the flower from other;dissimilar bank
and own the invesment base on the asset which its quality is high


" That its meaning, pertinent bank avoid the possibility
of the happening of instability is such as those which
experienced of by the big bank this time," say the Choudhury

He enhance, all bank client nowadays look for the finance
institution becoming their money security and their choice
now is bank base on the Islam. It is not strange if amount
of client IBB lately mount, inclusive of client from circle
non-Muslim

client Non-Muslim change over to IBB, because conventional
bank do not give the opportunity for loan for the defrayal
of housing of during crisis happened. And IBB will launch
the loan scheme for the purchasing of human of pursuant
to principles of expense Islami

Others, word Choudhury, client non-Muslim believe that
bank base on the Islam offer the concept have more ethical
business." Business invesment base on the Moslem law,
prohibit invesment in sectors business assumed
impinge the law. For example invesment in company of
which deal with gambling, pornography, smoke and other
commodity is which oppose against the Islam values,"
clear of Choudhury.

Islamic banking is steadily moving into the mainstream
of conventional financial systems and has remained largely
insulated from the global credit crisis.

It is expanding not only in the Muslim world,
but also in other countries where Muslims are a minority,
notably Britain, France, the US and even Japan.
The industry has grown at a prodigious rate of 15-20%
annually over the past decade; a trend that is likely
to continue as the economic and construction boom
in the Middle East and Asia regions will boost the value of
Shariah assets.


There are now over 300 Islamic financial institutions
(IFIs) spread over 75 countries and 300 Shariah-complaint
mutual funds, whereas, just one Egyptian-based Islamic bank
existed in 1975.

Currently, about $800bn is deposited in Islamic banks,
mutual funds, insurance schemes and Islamic branches (windows)
of conventional banks. By contrast, the market was valued at
only $140bn in 2000. McKinsey & Co, the business consultants,
estimates Islamic financial assets could reach $1 trillion
by 2010. Learn more Handbook of Islamic Banking
(Elgar Original Reference)

Moody’s Investors Service, the ratings agency, is very bullish,
predicting that a relatively young industry could boast
worldwide assets of $4 trillion within five years. It notes:
“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 Shariah-compliant
personal loans or from investors wanting to buy Sukuk bonds.
A booming and profitable market attracts entrants because excess demand needs to meet additional supply.”

The US led sub-prime fiasco that wiped billions off
balance sheets of western giants, or worse, the liquidation
of Lehman Brothers, the fourth-largest US investment bank,
underpins the benefits of Shariah law, which bans the trading
of ‘toxic’ debt contracts and profit-sharing or leasing without
underlying tangible assets. Those fashionable investment
bandwagons, such as Collateralised Debt Obligations (CDOs),
Asset-backed Securities Index - an index of credit default
swaps referencing 20 bonds collateralised by sub-prime
mortgages.


Leveraged bank loans (rated below investment grade) and
Swaptions (options on interest rate swaps) are strictly
forbidden, while lending must be prudent and linked to real
economic activity. Thus, Islamic businesses offer a safety
net against dubious or junk structured securities,
which have triggered market turmoil since late 2007.

Of all the rapidly growing Shariah-compliant products
none are gaining in popularity as much as Sukuk.
The market for Islamic bonds has swelled in the past
six years. According to the Islamic Finance Information
Service (IFIS), over $43bn of Sukuks were issued in 177
deals last year. That total compares with $27.39bn in 2006
and $5.71bn in 2003. The bulk of Shariah securities
originated in Asia (specifically Malaysia) and the Gulf
Cooperation Council (GCC) states. Visit Islamic Bonds:
Your Guide to Structuring, Issuing and Investing in Sukuk

Source: www.africasia.com