SYDNEY
Four days after HSBC Holdings said it would shrink its global Islamic banking, National Bank of Abu Dhabi showed very different plans: it is focused on the contribution of the sharia-compliant activities to triple in the coming eight years.
The contrast suggests that rather than as a sign of weakness in the Islamic financial sector, HSBC's decision reflected his own business priorities-and to the extent that the British bank pulls out of the industry, local banks will get a chance to expand. HSBC announced early this month that with the exception of wholesale banking operations, not more Islamic products in Great Britain, the United Arab Emirates, Bahrain, Bangladesh, Singapore and Mauritius would offer.
It said that it would be her Islamic finance activities focus on customers in Malaysia and Saudi Arabia, while keeping a limited presence in Indonesia.
Through the HSBC Amanah arm, stationed in the UAE, HSBC was a pioneer in the industry and serving the largest Islamic Affairs of all western shore, so the news sent ripples through the sector.
Some analysts speculated that the decision reflected doubts about the long-term profitability of Islamic banking-perhaps dissatisfaction with costs that are higher than conventional banking can in some areas. Frequent asset transfers can attract repeated taxes, while the expertise to complex sharia-compliant transactions to buy expensive structure.
The details of HSBC's announcement, however, the bank will not come close to pulling out of Islamic finance and even can continue to grow in some parts of the industry. The bank estimated that the approximately 83 percent of his revenue Islamic Affairs after the move would keep.
HSBC stressed that the wholesale Islamic banking operations, which are supposed to be more profitable than retail and its activities aimed at issues in the Gulf's booming sukuk market, where it is a leader. Other golf-institutions also plan to grow in the sector.
Dubai-based investment bank Shuaa capital is looking for her share of the Islamic sharia-compliant business through her window to increase credit Division said a spokesman of the company.
Chang said it would be premature to expect a trend for Western banks pulling back in Islamic finance.
"It is too early to a snap judgments. HSBC, RBS, Deutsche Bank and BNP separate agencies to meet the Islamic structuring have created and this speaks for itself, "he said.
But to the extent that the Western institutions back bowls, Golf will take place, said Shafiq eager to their banks.
"There is a very good chance that they ensure the sophistication and the suite of products currently compiled by foreign banks, they get a big chunk of the company." HSBC did not detail how it would deal with customers in six countries where it will cut Islamic Affairs, or give a monetary value for the size of the company.
"We will ensure that we Account services for existing customers, with appropriate sharia continue to monitor, as they transition to alternative arrangements," the bank said.
Qatar's experience suggests some of HSBC Amanah HSBC customers in affected countries cannot leave but instead moved to the conventional side of the bank, limit the windfall for other banks.
After conventional banks offering Islamic services banned Qatar last year, was the flow of deposits to Islamic banks smaller than expected; many depositors remained faithful to their institutions. According to some estimates, based 60-70 percent of bank customers their choice of bank mainly on prices and quality of service rather than religious admissibility.
Post a Comment
Post a Comment