Islamic banks thrive
(6 November 2009 – Global) Research has shown that assets held by banks complying with Islamic Sharia law are thriving despite the global financial crisis.
The latest research by The Banker magazine reveals that assets held by fully Sharia-compliant banks or Islamic units of conventional banks rose by 28.6 percent to US$822 billion (A$901 billion) in 2009.
The rise was an increase from US$639 billion (A$700 billion) in 2008 and contrasts with the results conventional banks are experiencing.
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 US$1,033 billion (A$1.13 trillion) in 2010.
Brian Caplen, editor, The Banker, said that 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.
Mr Caplen also said, however, work remained to be done in managing liquidity at Islamic banks, and transparency and financial reporting remained challenges for the industry.
The rise was an increase from US$639 billion (A$700 billion) in 2008 and contrasts with the results conventional banks are experiencing.
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 US$1,033 billion (A$1.13 trillion) in 2010.
Brian Caplen, editor, The Banker, said that 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.
Mr Caplen also said, however, work remained to be done in managing liquidity at Islamic banks, and transparency and financial reporting remained challenges for the industry.
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