Luxembourg is emerging as important domicile for

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Luxembourg is emerging as important domicile for funds, sukuk The Governor of the Banque centrale du Luxembourg, the central bank, Yves Mersch, has called on European banking authorities to familiarize themselves with Islamic banking and stressed that the current needs of Europe's 38 million plus Muslims and those interested in faith-based ethical finance have "not yet appropriately been addressed by the conventional banking offering". Gov. Mersch, one of the more proactive European central bankers as far as Islamic financial inclusion is concerned, while addressing the 5th Economic Forum of the Belgium-Luxembourg-Arab Countries held in Brussels last week, said that although banking authorities in Europe are not competent in Shariah matters relating to financial transactions, it is important that they "become more familiar with the principles and practices specific to Islamic finance in order to make appropriate supervisory and regulatory judgments". Luxembourg is emerging as one of the more important domiciles for Islamic financial products such as funds and sukuk, and is poised to become the first European Union country to be an associate member of the Islamic Financial Services Board (IFSB), the Kuala Lumpur-based prudential and supervisory standard setting body for global Islamic finance industry. Mersch confirmed that the central bank has applied to join the IFSB and the decision to accept the Banque centrale du Luxembourg as a member is a formality and will be announced in Kuala Lumpur in due course after a meeting of the IFSB council. The Banque centrale du Luxembourg will also second staff to the IFSB so that they can become familiar with Islamic finance concepts and study the various issues, notably liquidity and risk management. Luxembourg has been steadily increasing its political support to facilitate Islamic finance in its jurisdiction. TUNISIA: ZITOUNA Bank Created, active in Islamic Finance\ TUNIS - Banque Zitouna, the new Islamic Tunisian bank created by businessman Mohamed Sakher El Materi, son-in-law of President Ben Ali, will be opened in the first quarter of 2010. The bank's general assembly in Tunis has approved the articles of association and the appointment of directors. Banque Zitouna has a capital of 30 million dinar (around 15.5 million euros). So far, only a Saudi bank was active in the sector of Islamic finance in Tunisia. Islamic Banking News
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July-September 2009 16 El Materi, the website Infotunisie reports, underlined that Banque Zitouna ''was created at the right time, to make the orientation of President Ben Ali on the consolidation of the banking system more concrete, in support of business, as well as Tunisian and international investments''.(ANSAmed). Watchdog touts Germany as Islamic finance base
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Luxembourg is emerging as important domicile for funds sukuk

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