Ahmadinejad: Islamic Banking in Iran to be Carried Out

President Mahmoud Ahmadinejad said here on Sunday that Iran will carry out major banking reforms under management of the Central Bank of Iran (CBI) and Ministry of Economy and Financial Affairs.

(Ahlul Bayt News Agency) -  According to Presidential website, the President while addressing the 51st Annual CBI meeting that the CBI should support the government’s macro economic projects, including taxation, customs and subsidy reforms.

He said the CBI and other banks should cooperate with the Ministry of Economy and Financial Affairs in fully implementing the government’s economic projects to serve masses and promote their welfare.

He added that all CBI policies and measures should bring about public tranquility and peace.

“The CBI is responsible for balancing the country’s monetary and financial market and it should try to promote justice and national income in the society.”

Pointing to the enemies' various plots to put pressure on the Iranian nation, Ahmadinejad said the CBI is the backbone of the country in facing enemy pressures and it should be so powerful, self-confident and firm in thwarting enemy plans.

Concluding his remarks, Ahmadinejad said there is no special economic problem in the country and the economic indices have improved compared to the past.

http://www.abna.ir/data.asp?lang=3&id=287984

Iran, biggest Shariah-compliant market: The Banker

TEHRAN - Iran is the largest market for Shariah-compliant assets, accounting for 35.6 percent of the global aggregate, The Banker magazine's ""Top 500 Islamic Financial Institutions"" ranking shows, reported ISNA news agency.

Islamic banking assets continued with double-digit growth this year, even as conventional bank growth stagnated, The Banker's survey said.

The report is the only annual benchmark of its kind, which ranks over 600 retail, commercial and investment banks, insurance companies and asset managers according to their Shariah-compliant assets.

Assets held by fully Shariah-compliant banks or Islamic banking windows of conventional banks, rose by 28.6 percent, to $822b from $639b in 2008.

The Islamic finance industry continues to build a solid track record: the compound annual growth rate for 2006-2009 is 27.86 percent, with assets forecast to hit $1,033b in 2010.

Link: http://www.tehrantimes.com/index_View.asp?code=207744
Outside the Middle East, Malaysia remains by far the largest player, accounting for 10.5 percent of the global aggregate, but other markets are expanding rapidly. The UK now accounts for just under 2.5 percent of global Shariah-compliant assets, and the Syrian Islamic finance market expanded an eye-catching 500 percent.

The Banker is the world's premier banking and finance magazine. Read in 150 countries around the world, The Banker is the key source of data and analysis for the industry. The Banker has been providing global financial intelligence since 1926 and has built a reputation for objective and incisive reporting on major events.

Every month the magazine combines in-depth regional and country coverage with reports on capital markets and structured finance, risk management, working capital management and securities services, environmental finance, trade and project finance, trading, technology and management and governance issues.

Sharia refers to the wide body of Islamic religious law. Used thus, it refers to the legal framework within which the public and private aspects of life are regulated for those living in a legal system based on Islamic principles of jurisprudence and for Muslims living outside the domain. Sharia deals with many aspects of day-to-day life, including politics, economics, banking, business, contracts, family, and social issues

Global switch to Islamic finance needed: Ahmadinejad

The global economic order needs "radical change", Iranian President Mahmoud Ahmadinejad said on Monday, calling for the adoption of Islamic principles instead of capitalist values.

"The present economic crisis is due to the capitalist system. The world needs radical change," Ahmadinejad told a one-day economic summit of the Organisation of the Islamic Conference (OIC).

Describing interest rates as the "biggest and most fundamental problem of the capitalist system," Ahmadinejad called said economic programmes based on Islamic principles offered the way out.

"The world is looking for fairer values that we cannot find in the capitalist system. The world system based on usury has collapsed, proving its failure," he said in comments translated into Turkish.

"We have to draw up programmes based on Islamic economic thinkers. That way we can guide people to happiness, security, justice and honesty. This is the most correct way to salvation," he added.

Ahmadinejad also urged member countries to agree to carrying out trade in their national currencies and setting up a common market.

"By announcing the type of money to be used between member countries, we will be saved from the adverse effects of global capitalism," Ahmadinejad added.

Link: http://www.zawya.com/Story.cfm/sidANA20091109T112737ZKQO14/Global%20switch%20to%20Islamic%20finance%20needed:%20Ahmadinejad

Ahmadinejad proposes OIC common market

TEHRAN - Iranian President Mahmoud Ahmadinejad has put forward a proposal calling for the establishment of a common market among Organization of the Islamic Conference member states.

“The establishment of a common market is an achievable goal. Holding permanent joint trade exhibitions and (setting up) a system of preferential tariffs (and) the acceleration and facilitation of visa issuance for people conducting economic activities… can be a good beginning,” he said in Istanbul on Monday at the 25th Session of the Standing Committee for Economic and Commercial Cooperation (COMCEC) of the OIC.

He also advised OIC countries to use their own local currencies in their trade exchanges with one another.

He went on to say that OIC member states should apply Islamic economic principles and the OIC should make efforts to alleviate poverty.

On Sunday, Ahmadinejad proposed the establishment of a joint foreign currency fund for OIC member states.

The implementation of these measures will boost the sense of brotherhood and unity among Muslim countries, he added.

Ahmadinejad noted that certain countries with deep-rooted historical problems have united in order to protect their interests and asked why Muslim countries, which do not have such problems, do not unite and provide assistance to each other.

He also expressed hope that the COMCEC meeting would be the harbinger of a great improvement in relations between OIC countries.

Link: http://www.tehrantimes.com/index_View.asp?code=207564

Fixed interest runs counter to Islamic banking

Iranian president Mahmoud Ahmadinejad is against a usury based lending system saying that fixed interest is usury and is against the country's banking laws.

Fixed bank interest rate is usury and is described as illegal. Bank interest is largely planned to be a function of economic circle,” The president told a news conference on Monday.

Article 21 of the Law on Usury Free Banking Operations rules out usury in the country's banking system. The article reads: In its dealings with other banks, Central Bank of the Islamic Republic of Iran is not authorized to engage in banking operations which involves usury; nor are the banks among themselves.

The president added that the government is "determined to take the necessary steps to keep interest rates at single rate levels. We are planning fiscal disciplines to stick to this plan.”

Further to banking reform plans, Ahmadinejad said the tenth government would decrease unemployment to below 7 percent by pursuing its economic reform plan.

“Despite a global economic downturn and sanction challenges, we will manage to cut the unemployment rate to less than 7 percent during this presidential term,” Ahmadinejad said.

The official rates for unemployment in 2009 stand at just over 12%. The figures for youth under 30, especially females, is significantly higher.

The Iranian president also stressed that the cabinet under his previous term of presidency had succeeded in containing inflation despite two serious crises - a global economic meltdown and unprecedented sanctions against the country.

According to the central bank, Iran's inflation rate fro 2008 was 24.3%.

Link: http://www.haber27.com/news_detail.php?id=39835