Islamic Banking has proved to be the most resilient system based on the basic principles of transparency and fairness in business, a senior banker has said.
"Islamic banking has proved its mettle during the financial crisis which started from the US and hit the global banking industry hard," said Abdulhakeem Al-Khayyat, the managing director and CEO of KFH-Bahrain.
"The resilience of Islamic financial institutions (IFIs) is due to the unique business model which will continue to be different from the conventional banking due to its nature being the asset-based approach for each dealing," said Al-Khayyat. "Overwhelming majority of IFIs see an asset base a starting point for each and every deal making this business much secure, transparent and open for investors and bankers. We don't believe in imagination as physical presence of assets is a basic ingredient for Islamic banking as this very basis has provided strong protective layers to each and every business in this industry," Al-Khayyat said.
He added the Islamic banking industry also faced numerous challenges such as harmonization of Shariah standards and strict adherence to the basic principles of this type of banking while competing with its established peers called conventional banks.
"The growth pattern and acceptance of the Islamic banking has been a hallmark behind the sustained growth of the Islamic banks and the financial institutions. This trend will be a ladder for achieving excellence for the entire Islamic banking industry in years to come," he added.
"We are extremely pleased with the plans to enhance the network of branches across the country, underscoring the bank's commitment to meeting the growing needs of its customer base in Bahrain," Al-Khayyat said, while talking about bolstering KFH-B's position in the Bahraini market.
"With a steady focus on our already robust retail operations, KFH-Bahrain will continue to expand its branch network and maintain its current position of being a solid and trusted financial institution, with a growing customer base, strong deposits and sterling overall performance. The requirements of our clients, shareholders and other stakeholders are our first priority," he added. "This is another clear declaration of KFH-Bahrain's unwavering commitment to both expanding our already extensive branch network and to enhancing convenience for our highly valued and widespread customer base," he added. "Our branches strategically are located in high density areas such as commercial areas, business hubs and residential communities. In order to completely stay in line with our strategy of always being close to our customers, we have established outlets in diversified areas in order to fully assist our entire customer base," he said.
"This opening of new branches and enhancement of operations reflects KFH-Bahrain's positive outlook on the economy," he added.
"With the opening of the new branches at all main locations in Bahrain, it makes banking with KFH-B easier and more convenient for customers who live and work in this area," he added."
"While the bank will continue to provide innovative customer care solutions, including its electronic banking channels and its call center, our focus this year is on increasing the number of branches we operate," he added.
