Moody's Global Head for Islamic finance
A record of
The 20% compound annual growth in Islamic financings has outpaced the 16% growth in Islamic deposits, which has created a funding gap.
So over 95% of the banks' funding mix is composed of short-term deposit funding, the banks are in need of amounts of stable long-term funding, sukuk issuances provides such funding.
Sukuk issuances were expected to rise, if Islamic banks maintained their current risk-adjusted profitability to support their internal capital growth of 8% per annum, and risk-weighted assets grow at 11% per annum.
The banks need an additional
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