Archive for March, 2013
Last-minute Cyprus deal approved without vote, offshore finance industry killed in the process
- Published on Monday, 25 March 2013 08:26
- 1 Comment
Islamic banking assets grow faster than conventional banking assets
- Published on Thursday, 21 March 2013 08:45
- 0 Comments
Islamic banking assets with commercial banks in the GCC* reached $445 billion at the end of 2012, up from $390 billion in 2011, with the outlook for the industry remaining relatively positive in 2013. This represents a 14 percent year-on-year growth, which is considerably lower than the five-year average of 19 percent.
Kuwait to cut subsidies, introduce VAT and income tax in the coming years
- Published on Thursday, 21 March 2013 07:49
- 3 Comments
The country has come to realize, however, that it must not only diversify its sources of revenue, it must also cut subsidies and introduce a consumption tax in the near future. Gulf countries have a generous welfare system, which includes subsidized food, fuel, housing, water and electricity along with free health and education. None of the countries in the Gulf have been able to introduce a tax system yet, much less reduce the population’s reliance on subsidies. This is a very sensitive subject, which we have covered in previous post, here and here.
Money-laundering and other poor decisions put breaks on HSBC’s revenue growth, 5,000 more jobs might be cut
- Published on Wednesday, 20 March 2013 08:11
- 11 Comments
Though HSBC’s problems became clear only during the financial crisis, some of the problems were present well before 2008. Let’s start first with 2003. This was the year HSBC acquired Household International in the US. A well-known predatory lender, which had its run-ins with the law for its predatory practices. HSBC, a global bank by all standards, was merely a New York bank in the US, with a few branches in Miami and Los Angeles. The pressure was on senior management to make a significant acquisition in the US to enhance its footprint in the market.
UK triple-A downgrade brings sukuk issuance back in focus
- Published on Tuesday, 19 March 2013 08:37
- 4 Comments
Five years ago, the UK’s Treasury made headlines as it announced plans to be the first western government to issue sukuk. The plan had two objectives; first, to diversify the government’s funding base by attracting a new breed of investors, and second, to solidify the UK’s role as the center for Islamic finance.