Arab Today, arab today troubled islamic lender faisal bank up for sale
Last Updated : GMT 21:18:14
Arab Today, arab today
Arab Today, arab today

Troubled Islamic lender Faisal Bank up for sale

Arab Today, arab today

Arab Today, arab today Troubled Islamic lender Faisal Bank up for sale

Manama - Arabstoday

Faisal Private Bank, struggling since the collapse of property schemes in the Gulf and beyond, is up for sale after failing to raise enough money to meet the Swiss regulator\'s minimum capital requirements, its chief executive said on Thursday. Chief Executive Mark Koch told Reuters the Geneva-based bank, which called itself the first Islamic private bank, is talking to three potential suitors. Faisal\'s parent, Bahrain-based Ithmaar Bank, will be selling part or all of its stake, he said. \"We have had to seek a new shareholder to take a majority position, and have identified several interested parties over the last five months,\" Koch told Reuters. He said the group was in advanced negotiations with two financial institutions from the Gulf and one from Britain. Faisal Private Bank was one of a group of institutions that initially thrived on up front payments from investors. It built up a 1.1 billion Swiss franc real estate portfolio by 2009, but hit trouble when prices fell and Swiss accounting rules changed in a way that stopped it paying dividends and collecting fees based on expected future earnings. Swiss regulator FINMA had given the bank until June to meet the minimal capital requirement of 50 million Swiss francs ($55 million). But Koch said the bank had struggled to raise funds for that or for his business plan to enter the trade finance business after a promised $60 million injection from Ithmaar did not materialise. \"It hasn\'t been fun having to turn down business because we were lacking capital,\" Koch said, adding that the picture looked brighter with expectations of a sale. Parent Ithmaar, itself a victim of the real estate bust, tried in 2009 to raise up to $500 million, in part to help recapitalise Faisal, but only got $100 million. Bahrain\'s central bank then blocked Ithmaar from sending funds to Faisal. The dearth of real estate deals amid the financial crisis also put paid to a business model that allowed executives from Ithmaar, Faisal and other institutions to profit by taking transaction fees from clients up front. Similar schemes cost investors dear across the region. Since rumours of the potential Faisal Private Bank sale hit the market early in 2012, shares in Ithmaar have almost tripled to 0.2 Bahraini dinars, although they remain well shy of their 2008 high of 0.727 dinars.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today troubled islamic lender faisal bank up for sale Arab Today, arab today troubled islamic lender faisal bank up for sale

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today troubled islamic lender faisal bank up for sale Arab Today, arab today troubled islamic lender faisal bank up for sale

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today Taxi! Transport gets an overhaul

GMT 12:09 2017 Sunday ,24 September

Taxi! Transport gets an overhaul
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Turkey warns of 'security' steps

GMT 12:17 2017 Sunday ,24 September

Turkey warns of 'security' steps
Arab Today, arab today North Korea 'more opaque'

GMT 10:50 2017 Sunday ,24 September

North Korea 'more opaque'
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Ministry seeks to improve education

GMT 14:49 2017 Sunday ,17 September

Ministry seeks to improve education
Arab Today, arab today 'Lady Beast' fights for girl gamers

GMT 10:27 2017 Sunday ,24 September

'Lady Beast' fights for girl gamers
Arab Today, arab today Psychologists help Mexico deal

GMT 05:05 2017 Sunday ,24 September

Psychologists help Mexico deal
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Third generation adds more power

GMT 13:40 2017 Sunday ,24 September

Third generation adds more power
Arab Today, arab today Carmakers face billions in European

GMT 12:37 2017 Saturday ,23 September

Carmakers face billions in European
Arab Today, arab today Lebleba is preoccupied in filming 'Back Street'

GMT 08:56 2017 Thursday ,21 September

Lebleba is preoccupied in filming 'Back Street'
Arab Today, arab today Big Western brands polluting oceans

GMT 20:10 2017 Saturday ,23 September

Big Western brands polluting oceans

GMT 08:59 2017 Wednesday ,20 September

Youssra prepares for launching her program

GMT 10:16 2017 Friday ,22 September

All eyes on May as she prepares

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 12:01 2017 Wednesday ,20 September

Puerto Rico, Virgin Islands brace

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 18:11 2017 Saturday ,23 September

Doctor provides advices to families

GMT 13:36 2017 Saturday ,23 September

unveils Joon - the 'millenials' airline

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 12:46 2017 Thursday ,21 September

Google likely to buy stake in Taiwan smartphone maker HTC

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday