Why Alternative Financing ?

You know that Turkey has twice listed companies that the Spanish stock exchange, with a GDP that is half Spanish. Spanish companies have relied traditionally on bank financing. The balance of loans to companies in Spain has more than tripled since year 2000, a disproportionate growth experienced by the GDP in that period. The credit crisis that erupted in July 2007 marked a before and after the ease of obtaining bank loans. If access to bank financing becomes more difficult, where growth will go to finance Spanish companies?

In this new blog of The Confidential we want to accommodate alternatives to pure bank financing with particular attention to the Alternative Stock Market (MAB), but which also give importance to other options such as private debt issues, degrees in original form or Islamic bonds, among others. In the blog will have the views of specialists in different areas involved in these processes (lawyers, financial advisors, companies specializing in corporate communications) and investors in those assets, so that readers can understand the opportunity and challenges that open with these funding routes.

The characteristic of this type of financing is that, in most cases, is related to more traditional practice of issuing shares and debt, where returns are more of a title commensurate with the value that good or service funding and less to the effect of indebtedness. Funding where the independence of advice, both issuers and investors is crucial and where some of the practices carried out in recent years have no place.

This funding is of particular relevance for Spanish companies which until 2007 enjoyed exceptional ease to access, directly and indirectly, to bank financing – you’ll treasure that God never to return – and with limited use of private debt issues or shares in stock markets. The credit crisis marks a turning point that will encourage alternative financing.

This funding also makes sense for investors, because they remain and continue to seek to place their wealth in assets that give them access to attractive returns and to diversify of its portfolio, in a context in which these investors require returns and assessments between assets, other than those we have experienced in recent years, distorted, in some cases, the effect of “leverage” (debt easy and abundant).

In this context, we believe that MAB was created by BME, opens an opportunity for mid-cap companies in Spain to get the bag, where one side will find advantages to the companies themselves, their shareholders and employees, and secondly, will have to manage the challenge of transparency which is listed on the market. The Ibex 35, Telefonica accounts for a quarter of this index: MAB, represents an opportunity for institutional investors and high net worth individuals involved in growing companies that generate a significant part of Spanish GDP and is underrepresented in stock.

Last week came to the U.S. market trading on the Rosetta Stone software maker. On a day rose by 42%. In the week preceding two trading companies left in the U.S., with significant increases also. This has led to improved sentiment in the markets, which has allowed to reopen the process of flotation. Thus, capital markets, alternative to bank financing, will be a necessary and effective alternative route for companies to be funded and there are sufficient reasons to believe that will have greater relevance in the years to come by enduring the difficulty of access to traditional forms funding.

In the circumstances we live in the coming years will be critical to find alternatives to the pure bank financing and how to reach these sources will write on the blog.

I say goodbye using an adapted quote from Keynes on this point: “If circumstances change, I change my mind and you what do you do?”

Constantino Gomez, a partner at Arcane

Islamic finance and Coprate Social Responsibility

Corporate social responsibility (CSR) and Islamic financial institutions should have an obvious fit given the faith-based ethos of islamic finance, which also gives prominence not only to wealth creation and economic development but also to the promotion of social justice and concepts based on hard work, thrift and low or no indebtedness.

While the contemporary Islamic banking movement is now in its fourth decade, CSR and corporate governance has been slow to take off in the industry and has started to come to the fore only in the last few years. Several Islamic financial institutions and those conventional institutions offering Islamic financial products and services through windows have had sizeable CSR initiatives partly channeled through Zakat funds or through other concepts such as Sadaqah and Waqf (endowments). Kuwait Finance House, Jordan Islamic Bank, Bank Islam Malaysia, CIMB Islamic Bank and other Malaysian Islamic banks have had active CRS programs for years ranging from financing drub rehabilitation programs in Kuwait, to clinics and girls’ colleges in Malaysia.

On the other hand, the Oasis Group in South Africa, which has an active Islamic asset management and pensions business, has spearheaded a unique mix of CSR with Islamic charitable work. The Oasis Group, according to Vice Chairman Nazeem Ebrahim, has two charitable trusts under the Islamic Waqf concept – the Oasis Group Holdings Trust and The Crescent Fund, which are active in funding good causes including projects in hospitals, sports facilities, old people’s homes and in disaster relief both in South Africa and abroad. One of its more offbeat CSR projects is participation as a sponsor in the Timbuktu project, which is supported by the South African government and managed by experts from the University of Cape Town.

The project involves the restoration of Islamic manuscripts and artifacts; and housing these in a new museum, which is being built by funds allocated by the South African government and donated by South African companies. The University of Cape Town is also training Malians in manuscript restoration and librarianship so that they could manage the museum on completion.

On the downside, however, there has been much neglect of the CSR function by many Islamic financial institutions. There have even been a few cases of abuse of CSR and Zakat funds. Part of the problem is that there has been no proper scrutiny, standard or evaluation of the CSR function in the global Islamic finance industry. The Auditing and Accounting Organization for Islamic Financial Institutions (AAOIFI) in Bahrain issued a CSR standard at the end of 2009, but both governments and financial institutions or there regulatory bodies have failed to leverage this important social asset of Islamic finance.

As such, the publication of “The Social Responsibility Trends at Islamic Financial Institutions” report at the end of January 2010 by the US-based DinarStandard and Dar Al-Istithmar, which claim that it is a first-of-its-kind report, is timely. According to the publishers, the report is primarily based on the aggregate results of a survey on Social Responsibility at Islamic Financial Institutions (IFIs) carried out during the summer and fall of 2009.

The survey sample is unfortunately very limited which must impact on the conclusions and the potential for extrapolation on such a basis. This is a common drawback of survey-based methodology. “All, full or subsidiary, IFIs were eligible to participate and the invitation to participate in the survey was sent to the chief executive officers of 154 of the largest IFIs to complete the survey online or submit it through fax, e-mail or regular mail. Twenty-nine institutions completed the survey with a broad degree of representation from across the world,” stressed the report.

According to the report, some key findings of the survey were: a) 76 percent of respondents indicated that they had policies for charitable activities whilst 17 percent had none. Charitable activities remains a strong priority for IFIs, but most do not consider utilizing their fund mobilizing capabilities to raise funds for charities or emergency causes (only 34 percent said they do); b) 55 percent responded yes to having some policy in investment quotas on social, developmental and environment-orientated investments, whilst 38 percent did not have such policy. However, amongst the three types, environmental related investment quotas had the least focus (38 percent); c) 100 percent of respondents answered yes to having a policy to screen prospective clients which is actively implemented. Similarly, 97 percent have an organizational policy that deals with client responsibly; d) 83 percent of respondents stated that they have policies that provide equal opportunity to all of their employees, 93 percent have policies that ensure merit-based salary and promotion, and 86 percent have policies that specifically prohibit any kind of discrimination. However, when it comes to having policy to monitor employees from different backgrounds and gender, the response was mix with only 52 percent admitting to having such a monitoring policy and 48 percent not having any such policy.

Given the limited sample and methodology, the conclusion of the report, said author and senior consultant at Dar Al-Istithmar, Sayd Farook, are premature and sweeping. “This report,” he stressed, “demonstrates, within its limited sample, that Islamic finance is a truly ethical solution to the socio-economic issues facing mankind.”

It is also a pity that the report did not even attempt to define what corporate social responsibility is, especially under Islamic concepts. This may sound obvious but there are disagreements over the nature of CSR and its implementation. In the Islamic finance space, for instance, some Shariah scholars are dead against institutionalizing Zakat and insist that it must be distributed immediately to the poor and needy for immediate relief from hunger and poverty. Others have successfully institutionalized the Zakat function which has resulted in impressive gains in efforts toward social and financial inclusion; poverty alleviation; provision of primary healthcare and education; women’s education, drug rehabilitation and so on.

The other missed opportunity of the report is that its independence is undermined because it was done with the support of AAOIFI. Instead, the report should also have critically evaluated the AAOIFI standard 7 on CSR which was issued under its governance standards, and also examined other codes such as Bank Negara Malaysia’s Management Code of Ethics for IFIs in Malaysia.

Indeed, according to the publishers, the survey benchmarked IFIs with the recently released CSR standards by AAOIFI that cover 13 aspects of social responsibility such as client engagement, employee welfare, charity, environment, investment quotas and others.

Nevertheless, both DinarStandard and Dar Al-Istithmar should be encouraged to continue their work in this vital area. The global financial crisis has highlighted some issues between some banking practices and amorality with the society, communities and the real economy in which they operate. Islamic banking would be naïve to think that the industry is immune to the excesses and vagaries of casino capitalism that has brought the global financial system to the brink of collapse. In fact, concomitant with a culture of poor disclosure and corporate governance in a number of markets, and underdeveloped enforcement and a lack of transparency, the global financial crisis should be a reality check for the Islamic finance sector, albeit it has emerged relatively unscathed than its conventional counterpart.

source : arabnews

MBA en finance islamique mondial

MBA dans les cours de finance islamique sont de plus attrayante auprès des professionnels de la finance islamique avec l’émergence de la finance islamique et la banque. Il ya nombre d’universités et d’établissements mènent la MA MSc MBA en finance islamique, y compris au niveau mondial les meilleures universités britanniques. Voici quelques-unes des institutions qui effectuent de la finance islamique MBA Major, la concentration, au choix et des spécialisations. L’auteur espère recevoir des contributions des lecteurs et institutions pour base de données.

Islamic Finance MBA région du Moyen-Orient

EMBA Spécialisation en finance islamique – Cass Business School – Dubai

MBA en finance islamique – Collège universitaire de Bahreïn

MBA avec concentration en finance islamique – Université américaine du Moyen-Orient Koweït

MBA avec concentration en finance islamique Business – Le Talal Abu-Ghazaleh Organization (TAG-Org) Jordanie

MBA avec spécialisation en finance islamique et l’assurance – Gulf University of Science and Technology Koweït

MBA Finance avec choix à la finance islamique – Institut de Technologie de gestion de Dubaï

Islamic Finance MBA et Masters au Royaume-Uni et en Europe

 

MBA in Islamic Banking and Finance – Académie du Royaume-Uni

Le système bancaire islamique et des Finances MBA – Academy for International Studies Modern Limited UK

Global MBA en finance islamique – Graduate School of Business Universiti Tun Abdul Razak Malaisie

MBA Islamic Banking & Finance Major – Validée et décerné par l’Université du Pays de Galles, Royaume-Uni – La livraison par les consultants Turning Point pour l’éducation des

MBA en banque et finance avec des modules optionnels en finance islamique – Le Bangor Business School de l’université de Bangor Royaume-Uni

Master of Business Administration in Islamic Finance – Université d’Aberdeen, Royaume-Uni

MBA Islamic Banking & Finance – London School of Business et des Finances du Royaume-Uni

MSc in Islamic Banking and Finance – FBT London UK

MSc Islamic Banking and Finance – Salford Business School, Université de Salford au Royaume-Uni

MBA avec spécialisation mondial et de la finance islamique – Hochschule Bremen University of Applied Sciences, International Graduate Center Germany

Islamic Finance MBA et Masters Malaisie

MBA avec concentration en finance islamique – Université islamique internationale de la Malaisie

MBA, avec au choix dans la finance islamique – Universiti Industri Selangor (UNISEL) Malaisie

Master en Finance Islamique (MIF) – INCEIF Malaisie

MBA Muamalah – Selangor International Islamic University College (kuis) – Malaisie

Islamic Finance MBA et Masters Pakistan

MBA bancaire et financière avec des modules de la finance islamique – Mohammad Ali Jinnah University Pakistan

Master en Banking & Finance – avec des modules de la finance islamique – University of South Asia Pakistan

MBA en affaires islamiques et des Finances – RIPHAH International University Pakistan

MBA finance islamique et Takaful en tant que choix – Hailey College of Banking and Finance,

Université de Punjab, au Pakistan

MBA in Islamic Business & Finance – RCIB & Meezan Bank Pakistan

MBA in Islamic Banking and Finance – Dadabhoy Institute of Higher Education du Pakistan

MBA Finance avec choix à la finance islamique – Université islamique internationale d’Islamabad

MBA avec concentration en finance islamique – University of Central Punjab, au Pakistan

MBA Finance avec choix à la finance islamique – CADEAU Université Pakistan

Master of Islamic Banking and Finance – Australia

Master of Islamic Banking and Finance – La Trobe University – Australie

Online Islamic Finance and Banking MBA

 

MBA in Islamic Banking and Finance – Académie d’études internationales modernes (en ligne)

Msc en finance islamique – (Online) London School of Business et des Finances du Royaume-Uni

MBA en finance islamique – EUCLID Université (en ligne)