Bangladesh Bank (BB) has issued a circular enhancing the banks’ advance to deposit ratio (ADR) by 2% to increase credit supply and attract more investments, as Bangladesh faces tough times due to the COVID-19 pandemic.  According to the circular, Investment-Deposit Ratio (IDR) for Islamic banks will be enhanced to 92% from 90%, while the ADR of conventional banks will be increased from 85% to 87%, effective the 15th of April 2020. Bangladesh’s banking sector praised BB’s latest decision, stating that the measure&...

The Malaysian Rating Corporation Bhd (MARC) and the Malaysian Institute of Certified Public Accountants (MICPA) have requested the Government of Malaysia to consider allowing small and medium-sized enterprises (SMEs) to defer income tax instalment payments up to December 2020. Earlier under the Prihatin Rakyat Economic Stimulus Package unveiled on the 27th of March 2020, the Government allowed all SMEs to postpone income tax instalment payments for a three-month period effective from the 1st of April 2020. In a joint statement titled “Miti...

The World Bank (WB) stated in a recent report that the Gross Domestic Product (GDP) of Pakistan will contract by 1.3% in financial year 2020 (FY2020), due to sluggish domestic and global economic conditions. The report noted that Pakistan made considerable progress toward macroeconomic stabilisation during the first eight months of FY 2020. The WB added that inflation was expected to average 11.8% in FY 2020 and to gradually fall moving forward. The current account deficit is forecasted to shrink to 1.9% in FY 2020, as imports contract m...

In an effort to minimize the impact of the COVID-19 pandemic, the Ministry of Economy (MOE) of the United Arab Emirates (UAE) has announced a new list of service fees, reflecting a reduction across 94 of its services provided to individuals, companies and the business sector. According to the MOE, reductions in certain fees reach up to 98% while the financial impact to the business sector due to these reductions is forecast at AED 113 million in 2020. The MOE stated that these reductions cover a variety of its services, particularly the ones related to in...

The Saudi Arabian Capital Market Authority (CMA) has announced its decision to approve Al-Jazira Financial Markets Company to offer units of Al-Jazira Sukuk Fund (Fund) in a public offering. The CMA emphasized that investors should carefully study its terms and conditions of investment, which includes investment strategy as well as risk factors, in order to ensure the feasibility of their investments. Potential investors were advised to coordinate with the fund managers, in case the terms and conditions were too com...

A 60-day extension of the contribution warranty period for its non-motor general Takaful business customers has been introduced by the General Members of Malaysian Takaful Association (MTA). In addition, MTA has also announced other flexible measures in terms of renewal of coverage for non-motor general Takaful business. According to the changes introduced, Takaful operators will accept requests from participants for an extended contribution warranty period, subject to terms and conditions of the respective...

Determinants of Bank Liquidity in Syria: A Comparative Study Between Islamic and Conventional BanksIslamic banking, Reserves

Malaysian Rating Corporation (MARC) has issued an update on Southern Power Generation's (SPG) MYR 4.0 billion Sukuk Wakalah due to the implications of the Movement Control Order (MCO) enforced by the Government of Malaysia. According to MARC, the commissioning work of the power plant project in Pasir Gudang is only 77% complete with the scheduled commercial operation date (COD) being 1st of July 2020. However, the MCO, the duration of which is uncertain at the moment, has resulted in a nationwide stop work order for construction and commissioning activities...

Fitch Ratings (Fitch) has affirmed Saudi Arabia’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at “A” with a Stable Outlook, reflecting the country’s financial strength supported by strong fiscal and external balance sheets, including exceptionally high international reserves and low government debt. With the balance sheet of KSA shrinking due to the fall in oil prices, Fitch expects the government budget deficit to widen to about 12% of Gross Domestic Product in 2020, compared to 4.5% in 2019.   Fitch...

The Social Development Bank (SDB) of Saudi Arabia has launched a SAR 2 billion (USD 530 million) healthcare fund to provide assistance to new, as well as established small and medium enterprises (SMEs) in the healthcare industry across the country. Under this fund, the SDB will offer swift and flexible financing solutions to suit the requirements of each beneficiary. The aim is to assist SMEs in the healthcare sector, allowing them to continue providing their services to the public, while upli...