Share of KFH-Turkey in participation banking 37 pct
Diversification in financing portfolio: Al-Nahedh
KUWAIT CITY, July 24: “The market share of Kuwait Finance House- Turkey (KFH-Turkey) accounts for 37 percent of the participation banking in Turkey. The total assets of participation banks as percentage of the total assets of banks in Turkey account for 5-6 percent and is expected to surge” said KFH-Group CEO, Mazin Saad Al-Nahedh.
Speaking to Sky News Arabia TV in an interview conducted at the KFH’s Headquarters, Al-Nahedh added that the diversification of KFH-Turkey’s financing portfolio makes its assets in a good position, indicating that the diversifications in the economic sectors allow KFHTurkey to diversify the sectors to finance.
He revealed that no intentions now for new acquisitions in Turkey, however, nothing prevents KFH from that if the opportunity is good and the prices are suitable. The growth rates in KFHTurkey outpace the rates in Kuwait, Bahrain and Malaysia. This is attributable to the diversification of economy resources that encompass infrastructure, education, health, real estate investment and so forth.
Al-Nahed said that the failed coup in Turkey will diversely impact the investment in Turkey on the short term only, while the medium and long terms will witness robust growth and stability as the government won votes of confidence from its people, which lead to more political and economic stability, thus further lures investors.
He reassured that KFH closely and prudently monitors all the exposures of the bank in compliance with the instructions and regulations of the central bank and the regulatory authorities, indicating that the Kuwaiti banks have strong capital base. The capital adequacy ratio CAR of KFH-Group surpassed 17 percent as of end Q1.
Al-Nahedh said that KD 700 million sovereign debt issuances to Islamic banks since the beginning of the program that had started last April. The share of KFH accounts for 50 percent which represents its market share of Islamic banks in Kuwait. He noted that the pace of offering bonds is suitable for the market and the liquidity volume. A communique issued by the G20 ministers at the end of the two-day meeting said Brexit, which dominated discussions, had added to uncertainty in the global economy where growth was “weaker than desirable”. It added that members, however, were “well positioned to proactively address the potential economic and financial consequences”.
“In light of recent developments, we reiterate our determination to use all policy tools — monetary, fiscal and structural — individually and collectively to achieve our goal of strong, sustainable, balanced and inclusive growth.”
The International Monetary Fund this week cut its global growth forecasts because of the Brexit vote.
Whereas monetary policy figured prominently in previous meetings of G20 financial officials, Bank of France Governor Francois Villeroy de Galhau said there was very little debate this time and discussions focused instead on growth. That was echoed by others. There was broad consensus that the global economy needed more growth, US Treasury Secretary Jack Lew told reporters, while Chinese Finance Minister Lou Jiwei said it had been easier to forge consensus because the global recovery remained weak.
The spectre of protectionism, highlighted not only by Brexit but also by US Republican presidential candidate Donald Trump’s “America First” rhetoric and talk of pulling out of trade agreements, was also a focus for the policymakers.
“Not only Brexit but various risks of low growth remain, and there was a lot of debate on the need of monitoring developments including terrorism, geopolitical risks and refugees,” said a Japanese finance ministry official. “A lot of concerns were voiced over spreading measures for protectionism.”
In the communique, the G20 underscored “the role of open trade policies and a strong and secure global trading system in promoting inclusive global economic growth, and we will make further efforts to revitalise global trade and lift investment”.