Thai to open 1st national Islamic bank next month<\/p>\n
Agence France-Presse, Bangkok<\/p>\n
Thailand's first national Islamic bank will open next month,
\ninitially in the capital of Bangkok and then with branches across
\nthe country, its chairman said Thursday.<\/p>\n
The Islamic Bank of Thailand will start operations on January
\n15, with 13 branches planned to open in 2003 including in the
\nMuslim-majority southern provinces of Pattani, Narathiwat, Yala,
\nSongkhla and Satun.<\/p>\n
"The bank has offered shares to several financial institutions
\nincluding the Government Savings Bank and (state-owned) Krung
\nThai Bank," chairman Aree Wong-araya told reporters.<\/p>\n
Shareholders are not allowed to hold more than a 15 percent
\nstake, he added.<\/p>\n
The bank is aiming to attract 10 billion baht (US$230.9
\nmillion) in capital from both foreign and domestic investors
\nduring its first five years, Aree said.<\/p>\n
Nopadol Tehaman, one of the bank's directors, said that
\nnegotiations between the governments of Thailand and Bahrain,
\nwhich is interested in snapping up a stake in the bank, are
\nongoing.<\/p>\n
"Bahrain's government has expressed an interest in holding
\nabout 50 percent of the shares, but Thai law does not allow (such
\na high stake)," he said.<\/p>\n
During the first year of operation, the bank is expected to
\nattract deposits worth 2.0 billion baht and make investments of
\nabout the same size, said board member Bantoon Waitanomsat.<\/p>\n
An Islamic bank takes deposits, but raises investment returns
\nthrough shares and provides depositors with dividends rather than
\ninterest payments, which are prohibited under Islamic rules.<\/p>\n
The bank invests only in projects deemed appropriate under
\nthose doctrines.<\/p>\n
There are already a number of government-owned banks providing
\n"window" Islamic banking services, but the new institution will
\nbe the first full-fledged Islamic bank.<\/p>\n
Muslims are a minority in Thailand, making up less than five
\npercent of the country's 62 million people.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/thai-to-open-1st-national-islamic-bank-next-month-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}