HERE’S some good news: HSBC bank will focus its Islamic financing operations in Saudi Arabia. Here’s the bad news: It’s dropping its Islamic banking operations in seven other countries, including the United Kingdom, and has already divested its assets in nearly 30 other countries.
HSBC’s reasons for getting out of the Islamic banking game in some countries is because of the pitiful state UK banks have been in since the global economic meltdown of 2008 and the restructuring efforts now underway to revive the industry. But HSBC, as a conventional bank, also could not really compete against the big Islamic banks.
A case in point was HSBC’s success in becoming the first Western global bank to sell $500 million sukuk, but still falling far short to become a significant competitor against the big Islamic banks.
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