Dun & Bradstreet (D&B) Malaysia's Business Optimism Index (BOI) study has indicated that business sentiment across Malaysian firms has improved marginally despite remaining downbeat for the third quarter of 2020 (Q3-2020). The study released on the 29th of June 2020 stated that the BOI increased to -13.33% for Q3 2020, from -21.86% during Q2-2020. However, the BOI fell on a year-over-year (YoY) basis to   -13.3% for Q3-2020, from +7.22% for Q3-2019. The six business indicators under the quarterly BOI study consisted of volume of sales...

Bahrain Mumtalakat’s (BM) long-term Issuer Default Rating (IDR) and senior unsecured ratings have been affirmed at BB- by Fitch Ratings (Fitch), with the Outlook on the IDR at Stable. BM is the Government of Bahrain’s investment arm, being one of two of the Kingdom of Bahrain’s sovereign wealth funds.  As BM is a 100%-owned limited liability company of the Kingdom of Bahrain (rated at BB-/Stable), Fitch equates BM’s ratings with those of the country, regardless of BM’s stand-alone credit profile. Fitch is of...

The Pakistan Credit Rating Agency (PACRA) has affirmed the long-term rating of Pakistan-based MCB Islamic Bank (MIB) at ‘A’ with a Stable Outlook, meaning that the rating is unlikely to change. The affirmation of MIB’s long term rating is driven by the strong market position, established brand equity and sound financial profile of MIB’s parent company MCB Bank (MCB), which has a long-term rating of ‘AAA’. According to PACRA, the ratings incorporate the sponsor's willingness to support MIB whilst MIB’s ra...

FBN Quest Asset Management (FBNQAM), a subsidiary of Nigeria-based FBNQuest Merchant Bank (FBNQMB), has launched the FBN Halal Fund (FBNHF) aimed at meeting the needs of investors seeking long-term income generation. FBNHF will be regulated by Nigeria’s Securities and Exchange Commission and will provide exposure to a broad range of fixed income Shariah-compliant investments. According to local media reports, FBNHF will adopt a best practice approach with its governance structure through a Shariah Advisory Council of Experts, an Investment Committee, a Cus...

The Prime Minister of Malaysia, Tan Sri Muhyiddin Yassin, has stated that the entire banking and financial sector in Malaysia could take an MYR 1 trillion hit if the economy remains closed following the COVID-19 pandemic. Muhyiddin made this statement citing a discussion with the Governor of Bank Negara Malaysia. Whilst discussing the global impact of COVID-19, the Prime Minister stated that Malaysia needs to improve its economic activities in the short term as many factories in the country halted operations for months, leading to Malaysia’s businesse...

S&P Global Ratings (S&P) forecasts Malaysia’s gross domestic product (GDP) at 7.5% in 2021 and has reaffirmed Malaysia’s A- rating, with a downward revision of the Outlook from Stable to Negative.  Commenting on S&P’s rating, Malaysia’s Minister of Finance, Tengku Datuk Seri Zafrul Abdul Aziz stated that the Outlook revision was driven by the economic and fiscal impact of the COVID-19 pandemic. Zafrul added that the Government of Malaysia has taken time...

Following a meeting of the Monetary Policy Committee (MPC), the State Bank of Pakistan (SBP) announced it had lowered its policy rate by 100 basis points, bringing the rate down to 7%. Marking the fifth rate cut in the last three months, since the COVID-19 pandemic started, the SBP stated that the rate cut reflected a further improvement in the inflation outlook, although the domestic economic slow-down continues. The SBP also added that the downside risks to economic growth had increased.  The SBP further stated that given receding demand-side infla...

The International Monetary Fund (IMF)’s Executive Board has approved a stand-by financing arrangement (SBFA) of up to USD 5.2 billion for Egypt. The approval allows for the release of USD 2 billion effective immediately, with the remainder to be phased out over two reviews. Egypt maintains a strong track-record of establishing a home-grown economic reform programme successfully, which was supported by the IMF’s Extended Fund Facility during 2016-2019. However, due to the impact of COVID-19, which has caused global...

The Effect of Wadiah Product Quality Attributes on Customer Satisfaction: The Case of Jaiz Bank Nigeria PlcIslam, Islamic banking, Mudarib, Murabahah, Musharakah, Shariah, Provision

On 24 June 2020, IslamicMarkets.com organised an exclusive leadership interview with the CEO of HSBC Amanah, Arsalaan Ahmed (Oz), titled ‘Can Islamic Banks Lead in Building a Sustainable Financial System?’Interviewed by Daud Vicary, Chairman of Advisory Board of IslamicMarkets, Arsalaan shared HSBC Amanah’s expertise in championing sustainability and explained how Islamic banks should lead by example in driving sustainability. He also highlighted the role of Malaysia's Value-Based Intermediation (VBI) in empowering Islamic banks and the critical role of leadership in instil...