Interpreting Middle East Economic News and Analyzing Market Trends

Category: Banks

Deflation, defaults, social unrest and other ‘surprises’ waiting for us in 2015

Financial Crisis - Slideshare

Photo: Slideshare.net

    

As 2014 comes to an end, we wanted to take a look back at events and trends over the past few years and give you some of our thoughts on what we expect to see in 2015.  We decided to make a list… a top 10 list of ‘surprises’ we expect to see in the coming year.  Here they are… enjoy…  

     

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Qatar invests 1.75 billion euros in Deutsche Bank, but does it know what it’s investing in?

Hamad_Bin_Jassim

Investment company owned Sh. Hamad Bin Jassim Al-Thani invests in Deutsche Bank

 

Deutsche Bank has teamed up with a Qatari investment company owned by Sh. Hamad Bin Jassim Al-Thani to help raise 8 billion euros in fresh capital for the bank.  DB claims its for expansion plans, but this comes a year after it was forced to raise 3 billion euros by banking regulators.  Are any alarm bells going off?  If not, then add to this the fact that Qatar’s 1.75 billion euro investment was purchased at a 25-30% discount… are the bells ringing yet?

 

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Qatar Islamic Bank looks to acquire stake in Turkey’s Bank Asya

Bank Asya

Qatar Islamic Bank (QIB), Qatar’s largest Islamic bank, is in discussions to buy a stake in Bank Asya, Turkey’s largest participation bank (a.k.a. Islamic bank).  This is the second Qatari bank to jump in to Turkey in the past year.  Last March, Commercial Bank of Qatar (CBQ) acquired a 70.8% stake in Alternatifbank AS.  QIB’s timing, however, might prove to be better than CBQ’s.

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Bank of England is looking to enhance its appeal to Islamic banks

 

Bank of England

Photo source: The Economist

The Bank of England is planning on stepping up its liquidity offerings for Islamic banks amidst growing competition from Kuala Lumpur and Dubai, both of which are commited to becoming global Islamic banking centers.  London is still the defacto global Islamic banking center due to the sheer volume of Islamic banking transactions that flow through it.  However, new contenders are starting to slice away at London’s pie.

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Former CEO of bailed out Spanish bank becomes new CEO of Kuwait’s Gulf Bank

 

Novagalicia Banco Cesar Gonzalez

Fomer CEO of Novagalicia, César González (left) and president, José María Castellano (right) Source: La Vanguardia

Kuwait’s Gulf Bank announced that is has hired Cesar Gonzalez-Bueno to be its new CEO.  Mr. Gonzalez was the former CEO of bailed out Spanish bank, Novagalicia Banco.  Gulf Bank was also bailed out back in 2009 after derivative losses stemming from the financial crisis.

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