Bankers Dismiss Islamic pricing Benchmark Plan By <http://goog_600053642>Reuters<http://www.business24-7.ae/banking-finance/islamic-finance/bankers-dismiss-islamic-pricing-benchmark-plan-2010-06-03-1.251155> , Published Thursday, June 03, 2010 http://www.business24-7.ae/banking-finance/islamic-finance/bankers-dismiss-islamic-pricing-benchmark-plan-2010-06-03-1.251155
Malaysian Shariah bankers yesterday dismissed as impractical a proposed Islamic pricing benchmark, highlighting the financing industry's struggle to replace conventional interest rates as a pricing tool. Despite the Shariah's ban on usury, Islamic financial products are routinely priced using conventional rates such as London Interbank Offered Rates (Libor) in the absence of a Shariah-compliant benchmark. The International Shariah Research Academy for Islamic Finance (ISRA), a research group backed by Malaysia's central bank, has proposed that Malaysian Islamic banks use industry-specific benchmark pricing rates that are derived from underlying assets. But the plan drew a lukewarm response yesterday, with discussions largely focused on the difficulties of running two policy rates within one banking system. "Can the country actually afford a system where suddenly the price of Islamic financing is lower than conventional, then everyone flocks to Islamic [banks]?" Nasiruddin Kamaruddin, COO of Standard Chartered Saadiq, told the meeting. Azidy Daud, treasurer of Asian Finance Bank, said the proposed benchmark was better suited for private equity ventures. "This is a good benchmark but it is not applicable to the banking industry," he said. -- Regards, Nidal Alsayyed Contract Research Officer ISRA International Shari'ah Research Academy for Islamic Finance 2nd Floor, Annexe Block, Menara Tun Razak, Jalan Raja Laut, 50350 KL T: +603 2781 4221 F: +603 2692 4094 M: +6017 255 9700 www.isra.my EMAIL DISCLAIMER IMPORTANT: The information and message in this email and any attachment(s) attached may contain confidential and legally privileged information and it is solely meant for the intended recipient or entity addressed. Any access to this email by any unauthorised person (other than the intended recipient) is strictly prohibited and unlawful. If you are not the intended recipient, any disclosure, copying, distribution or any action taken or omitted in dependence on this, is prohibited and unlawful. If you receive or download this email in error or by mistake, please delete it immediately from your system, and notify us immediately by return email or our hotline 03-27814000. Email transmitted cannot be guaranteed from any error free as the information could be intercepted, contaminated, hacked, corrupted, lost, destroyed, incomplete or contain viruses. The recipient should check the email and any attachment for any viruses’ presence that could be transmitted via this e-mail. Please do not forward the email without any prior approval of the author. This communication has not been transmitted via a private or secure link or in encrypted form and is therefore subject to the usual hazards of Internet communications, nor can it be guaranteed that this communication has not been the subject of unauthorised interception or modification. -- You received this message because you are subscribed to the Google Groups "Kantakji Group" group. To post to this group, send email to [email protected] To unsubscribe from this group لفك الاشتراك من المجموعة أرسل للعنوان التالي رسالة فارغة, send email to [email protected] For more options, visit this group at http://groups.google.com/group/kantakjigroup?hl=en سياسة النشر في المجموعة: - ترك ما عارض أهل السنة والجماعة. - الاكتفاء بأمور ذات علاقة بالاقتصاد الإسلامي وعلومه ولو بالشيء البسيط. ويستثنى من هذا مايتعلق بالشأن العام على مستوى الأمة كحدث غزة مثلا. - عدم ذكر ما يتعلق بشخص طبيعي أو اعتباري بعينه. باستثناء الأمر العام الذي يهم عامة المسلمين. - تمرير بعض الأشياء الخفيفة المسلية ضمن قواعد الأدب وخاصة منها التي تأتي من أعضاء لا يشاركون عادة، والقصد من ذلك تشجيعهم على التفاعل الإيجابي. - ترك المديح الشخصي.
