Expectations of higher volume of Islamic banking to $ 4 trillion in 2020

Expectations of higher volume of Islamic banking to $ 4 trillion in 2020



Economy News Baghdad:
Abdul Ilah Botaiq, Secretary General of the General Council for Islamic Banks and Financial Institutions "Sebava", he said that Islamic banks are still able to double the size of its assets every five years almost, pointing out that the instruments that governments posed by the region is not sufficient to Amtsak large liquidity of Islamic banks, which close to $ 300 billion .
Said Botaiq, in an interview I followed "Economy News", "the size of Islamic banking continues to grow, although the past two years have witnessed slower growth compared to the previous decade.
He spoke about Botaiq disparity in growth between the markets, according to the maturity of the Islamic banking records so that in some seven per cent rise between them in each other to between 15 to 20 per cent. He added: "There is a steady growth in terms of assets, we note that the size of Islamic banking will double globally every five years Tgaria, I mean in 2010 was $ 1 trillion and became in 2015 more than two trillion dollars, and is now expected to reach 3.5 or $ 4 trillion in 2020. "
On Lakeh banks in the current circumstances response Botaiq by saying: "In 2014 decreased profitability in the countries where the associated liquidity of oil resources, as a Gulf and East Asia, but in six months or the last nine were Islamic banks' ability to cope with the new oil prices. And there were the difficulty of liquidity in the past year for some countries and governments have reduced investment, but in the last quarter of last year, things began to improve. "
But Botaiq pointed out that the year 2017 is still experiencing some challenges and blurred vision regarding fluctuations geo-strategy, which is located in the states, including elections in more than one Western country, describing the situation as "cautiously optimistic about the future."
Saw Botaiq that the merger between the Islamic banks announced operations recently, especially in Bahrain and Qatar, a natural progression in light of your many of the Islamic banking situation, explaining his point of view by saying: "This is a kind of inevitable, we have seen in the past decade or two establishment of banks without capital without adequate and sufficient operations, now we see since the start of the global financial crisis, there are regulatory changes and prudential standards, and these standards are a burden on the Islamic banks, especially small, given the cost of risk management and meet liquidity requirements. "
He stressed Botaiq that central banks in the countries of the region were headed for Islamic banks over the past years, calls for the integration of the solution to overcome these problems and owning more capital to help them achieve better growth.
And about the value-added tax in the Gulf region and their impact is expected on the Islamic banks, which some believe they may suffer more than others because of the nature of their work, said Botaiq that it is not new to the Islamic banking sector in general, especially since the tax applied in Egypt, Tunisia and other countries, exhibitors offer "Sebava" experience in giving advice and assistance.
For his opinion on the issues of sovereign instruments Gulf and private experiences in Saudi Arabia and Bahrain Botaiq he said: "This topic is very important, and we are in Sebava, and before the emergence of the challenges of oil prices, we ask to find versions of the instruments of sovereign because Islamic banks need to manage liquidity, have already states non-Muslim to issued similar instruments, such as Hong Kong, Britain and Luxembourg.
He continued Botaiq by saying: "the financing of Islamic banking infrastructure outside the framework of instruments is another problem, which is related to laws, control, and how risk management, although some countries have started to issue sovereign instruments but levels are inadequate. The size of the potential liquidity in Islamic banks can range between 250 and 300 billion, this amount is too large, but versions are hardly enough for more than one to three percent of it. We want an opportunity for Islamic banks to assist in the financing of infrastructure development plans, and ask that governments allow the creation of this investment mechanisms. "
And the assessment of the Islamic banking experience that recently launched in Morocco Botaiq said that there is a state of alert towards the point of the experiment to call banks participatory First, instead of "Islamic banks", in addition to creating a national committee for a unified fatwa shop for each legitimate bank committees. However, he hoped that the experience contributes to the expansion of financial inclusion in the country, and included those who did not enter the financial system after the economic sphere, as well as possession of an opportunity to enter West Africa that make up transactions 20 per cent of the trading banks of Morocco, especially countries such as the Gambia and Senegal.

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