Читать книгу Introduction to Islamic Banking and Finance - M Kabir Hassan - Страница 16

At the global level, Islamic banking started as social finance in the middle of the twentieth century. In Egypt, Mit Ghamr Islamic Savings Bank was established in 1963 by El-Naggar. Almost at the same time, Tabung Haji or Pilgrims Fund Corporation started operations in 1963 in Malaysia to help Muslims save to meet expenses of the Hajj journey.⁴³

Then, the Islamic Development Bank (IDB) was established in 1974 to provide financial support to member countries for economic and community development. After that, commercial banking started in 1970s with the establishment of the Dubai Islamic Bank. Ever since then, the Islamic financial institutions penetrated different parts of the world including the Middle East, East Asia, South Asia, Northern Africa, and Europe.

Thomson Reuters reports that there were as many as 1,389 Islamic financial institutions operating globally by the end of 2017 and at least 45 countries have regulations supporting Islamic finance operations.⁴⁴

Table 1.1. Growth in Islamic banking and finance (2012–2017).

Source: Thomson Reuters Global Islamic Finance Report 2018.

According to the Global Islamic Finance Report 2019, global Islamic finance assets reached $2.6 trillion in 2018.⁴⁵ Table 1.1 gives a snapshot of growth in Islamic banking and Islamic finance since 2012.

As much as 71% of the global Islamic financial assets are held by Islamic banking institutions including full-fledged Islamic banks and Islamic banking windows of conventional banks. The total number of Islamic banks and Islamic windows operating globally has reached 505 in 2017.

Among individual countries, the market share of Islamic banking in national banking in Saudi Arabia, Kuwait, Bahrain, Qatar, United Arab Emirates, Malaysia, Pakistan, and Indonesia remains at 52%, 46%, 30%, 26%, 22%, 26%, 15%, and 6%, respectively. Table 1.2 gives the share of different countries in the global Islamic banking assets.

In more recent years, Islamic finance industry assets grew by a Compound Annual Growth Rate (CAGR) of 6% to $2.6 trillion in 2018 as compared to 2012. Quarterly panel data from 2013 to 2018Q1 in Table 1.3 reveal that profitability in Islamic banks has generally been impressive. Furthermore, in Brunei, Egypt, Kuwait, Malaysia, Sudan, and Turkey, the cost to income ratio is below 50%. Except in Bahrain, the gross non-performing finance ratio is lower than 10% in all countries. It shows high asset quality in Islamic banking with low infection ratios. Finally, the capital adequacy ratio on average is greater than 13% in all countries. This shows that Islamic banks are solvent and have the ability to withstand financial shocks.

Table 1.2. Share of countries in global Islamic banking assets.

Country	Share in Global Islamic Banking Assets (%)
Iran	34.40
Saudi Arabia	20.40
UAE	9.30
Malaysia	9.10
Qatar	6.00
Kuwait	6.00
Turkey	2.60
Bangladesh	1.90
Indonesia	1.80
Bahrain	1.70
Sudan	1.60
Pakistan	1.20
Egypt	0.80
Jordan	0.70
Oman	0.60
Brunei	0.50
Others	1.40

Source: Islamic Financial Services Industry Stability Report 2018.

There is a significant potential for further growth in enabling financial inclusion in Muslim majority developing countries. A survey of 65,000 people from 64 countries highlights that Muslims are comparatively less likely than non-Muslims to have a formal account or save at a formal financial institution.⁴⁶ In countries like Afghanistan, Morocco, Iraq, Niger, and Djibouti, the percentage of the adult population with no bank accounts for religious reasons stands at 33.6%, 26.8%, 25.6%, 23.6%, and 22.8%, respectively.⁴⁷

Table 1.3. Islamic banking indicators globally.

Source: Authors’ calculations from IFSB Data.

Furthermore, Sub-Saharan Africa accounts for less than 2% of the Islamic finance assets globally even though the continent’s Muslim population is 250 million, and according to the World Bank, as many as 350 million Africans do not have a bank account.⁴⁸

In June 2014, Britain became the first non-Muslim country to issue Sukuk, which is an Islamic substitute for the bond. Besides that, Singapore and Hong Kong are other non-Muslim-majority countries that have also issued Sukuk in the past. Among the major companies, Goldman Sachs and General Electric’s GE Capital have also sold Islamic bonds in the past few years. The Economist reports that some non-Muslims may be drawn to pious banks for ethical reasons since Islamic law forbids investments in stocks of companies which deal in arms, alcoholic drinks, and tobacco.⁴⁹