Sunday, 14 September 2014

Conventional banks' sukuk to push limits of Islamic finance | Reuters

Conventional banks' sukuk to push limits of Islamic finance | Reuters:



"Islamic bond programmes from a trio of big conventional banks are set to expand the boundaries of Islamic finance, helping open the market to first-time issuers while testing the banks' ability to win over industry purists.



Since June, France's Societe Generale, Bank of Tokyo-Mitsubishi UFJ (BTMU) and Goldman Sachs have set up sukuk programmes, aiming to tap the pool of cash-rich Islamic investors.



They are treading a fine line, having to reconcile the fact that their businesses mostly depend on conventional banking practices - interest payments, and to some degree monetary speculation - which Islamic principles forbid."



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