Finance

Türkiye unveils national strategy for participation finance

Published

2 years ago

November 24, 2022

ANKARA

Türkiye has unveiled its first nationwide technique for participation finance in 2022-2025 with intention of strengthening the nation’s place in worldwide monetary markets.

The Participation Finance Technique Doc (PFSD) 2022-2025 was printed within the Official Gazette on Oct. 5, based on an announcement from the Presidential Finance Workplace on Thursday.

The roadmap goals to place Türkiye because the main nation in participation finance by implementing an inclusive, sustainable, and revolutionary participation monetary system that operates in accordance with the tenets of participation finance and considers goal-oriented ideas.

The doc “was ready for targets of working in compliance with the tenets of participation finance, creating viable and practical options to varied structural issues, reaching its deserved place within the monetary system and successfully supporting the Türkiye Economic system Mannequin,” stated the assertion.

The technique doc was designed round 5 foremost objectives: realizing institutional transformation, establishing supportive mechanisms, forming a holistic fiqh (Islamic jurisprudence) governance construction, guaranteeing the event of human capital, and boosting optimistic notion, consciousness, and participation monetary literacy.

In direction of these strategic targets, 84 motion objects had been decided.

A Participation Finance Technique Doc Coordination Board will probably be established as a way to guarantee coordination between establishments and organizations within the implementation of the motion objects within the PFSD and for high-level evaluation of the suggestions from the motion plan implementation and monitoring teams.

Members of the board, which is able to meet beneath the chairmanship of the Presidential Finance Workplace, will encompass government managers of the establishments and organizations instantly associated to PFSD and can meet no less than each 4 months.

As well as, the motion plan implementation and monitoring teams, consisting of representatives of accountable and related establishments and organizations, will probably be shaped for the belief of the strategic objectives and targets within the PFSD. These teams will meet each three months.

“Because the Finance Workplace, we intention to search out practical and relevant options to the structural issues of the participation finance system, and to construct a monetary construction that can contribute to Türkiye’s monetary independence, sturdy, sustainable and inclusive progress, with the roadmap laid out throughout the scope of the PFSD,” it stated.

Anadolu Company web site accommodates solely a portion of the information tales supplied to subscribers within the AA Information Broadcasting System (HAS), and in summarized kind. Please contact us for subscription choices.

Finance

Opposition blasts state attempt to assist major haredi school system in financial trouble

Published

4 hours ago

July 4, 2024

Press Room

Opposition blasts state attempt to assist major haredi school system in financial trouble

The coordinator of the opposition in Israel’s Knesset Finance Committee, MK Vladimir Beliak (Yesh Atid), criticized on Thursday reports that Prime Minister Benjamin Netanyahu had promised to assist a major haredi school system affiliated with United Torah Judaism MK and Knesset Finance Committee chairman, MK Moshe Gafni, that is currently under legal scrutiny for financial mismanagement.

In a post on X, Beliak wrote that he had received “more and more reports” that Netanyahu had promised to find funding to aid the private haredi school system known as the Hinuch Ha’atzmai (literally “Independent Education”) pay its employees’ salaries and social security benefits for the month of July.

The school system has been in financial trouble since a report in February by the Finance Ministry’s Accountant General Yahali Rotenberg laid out a series of financial irregularities. Beliak accused the prime minister of attempting to unlawfully assist the school system in order to prevent a political rupture with his political ally, at least until the end of the Knesset summer session on July 28.

Beliak warned the “prime minister’s office, the head of the Knesset Finance Committee (Gafni) and all those who are involved in the matter – we are following closely. We will scour with an iron comb every relevant transfer (of funds) that arrives at the finance committee. We will conduct an uncompromising professional, parliamentary, and legal struggle, we will reflect the reality, and we will update regularly,” Beliak wrote.

Moshe Gafni, Aryeh Deri (credit: Flash 90-)

Gafni threatened a number of weeks ago to quit his position as Knesset Finance Committee chair if a solution was not found to save the school system from bankruptcy, and the inability to do so could lead to a political rupture in the coalition. This could happen irrespective of another crisis regarding the end of the haredi exemption from IDF service.

Financial mismanagement led schools unable to pay salaries

Despite being privately run, the Hinuch Atzmai and its Shas-run counterpart, Bnei Yosef, enjoy special legal status and receive full state funding. The two systems have received over NIS three billion annually in state funding during the past few years, and they share characteristics with government bodies – they are directly connected to the government’s MERKAVA funding system, and they employ a finance-ministry-appointed accountant to run their finances. However, these school systems are not prone to the same level of oversight as public schools. The presence of the publicly appointed accountant has enabled the systems to avoid effective financial scrutiny, as they have argued that their finances are state-run and therefore not their responsibility.

However, the February report found that the Hinuch Haatzmai had bypassed its accountant and amassed a tax debt of over NIS 80 million, and another report found that the school system had accrued additional operational debts of over NIS 300m. The Hinuch Haatzmai is also facing dozens of challenges in court, including six class actions suits against alleged violations of employees’ rights, including unexplained salary deductions, unpaid work hours, and more. These legal challenges could lead to hundreds of millions of additional shekels of debt.

As a result, the Hinuch Haatzmai in May suffered a bank account foreclosure, and at first was unable to pay its employees’ salaries in June. The Finance Ministry agreed to loan the necessary funds for June, but the system now faces the same challenge for July.

Rotenberg in February threatened that if a solution was not found by July 1, the Hinuch Atzmai and Bnei Yosef school systems would be disconnected from the government’s MERKAVA funding system, and the finance ministry would remove its accountant. This would force the systems to employ independent financial management, and bear full responsibility if it failed to meet tax requirements and financial commitments.

However, Finance Minister Bezalel Smotrich, Minister in the Education Ministry Haim Biton (Shas), and representatives from the Justice Ministry have attempted in recent weeks to come up with an arrangement that would lead to closer oversight of the systems, while keeping them afloat financially by continuing full state funding.

FINANCE MINISTRY representatives reasoned that if this did not happen, the Hinuch Hatzmai, which has over 100,000 students and thousands of employees, would collapse, and the state would need to intervene regardless.

Members of the opposition opposed such an arrangement, as did the Movement for Quality Government in Israel (MQG). In a letter dated July 2 to Rotenberg, Biton, Finance Ministry legal adviser Asi Messing, Attorney-General Gali Baharav-Miara, and State Comptroller Matanyahu Englman, MQG called on the Finance Ministry to “publish clarifications to the arrangement that was made, the alternatives that were examined, and the implications on state coffers.”

In an accompanying statement MQG said, “The new arrangement, the details of which have not yet been officially published, which is supposed to include the disconnection of the educational networks from the government’s Merkava system, the opening of separate bank accounts, and the hiring of accountants to supervise budgetary management, may even make the situation worse.”

MQG listed what it viewed as five problems in the arrangement:

First was “absence of substantive reform.” According to MQG, “The arrangement does not include significant structural or financial changes in the conduct of the networks.”

Second was “continued unlimited funding.” MQG argued that “despite the repeated warnings of the accountant-general and the attorney-general, the arrangement continues to allow funding of the private party-political educational networks, without a complete disconnection from the government budgets and without a plan to repay their debts.”

MQG described the third problem as “increasing the state’s responsibility without compensation.” According to MQG, under the new arrangement, “The state takes on additional responsibility for the conduct of the networks, without requiring them to act in accordance with the rules of proper administration and the curricula of the ministry of education.”

The fourth problem, according to MQG, was a “lack of transparency,” as “the details of the arrangement and its consequences for the public have not been officially published, which raises serious concerns about the integrity of the process.”

Finally, MQG pointed out that Biton himself was the former manager of Bnei Yosef, and therefore was caught in a conflict of interest and should not have been involved in the negotiations.

MQG proposed the following steps:

“1. Full and transparent publication of the details of the arrangement that is being drawn up; 2. The establishment of a government inquiry committee to examine the set of relations between the state and the party-political education networks; 3. Re-examination of the funding model, incorporating the principles of transparency, equality and good governance; 4. Preventing the involvement of those who have a conflict of interest in the decision-making process; and 5. Creating a long-term plan to put the networks on a proper footing and to implement uniform standards throughout the education system.”

Gafni’s office said in response to a Jerusalem Post query that it “did not know” about the issue. The prime minister’s office did not respond.

Finance

Why Chinese banks are now vanishing

Published

11 hours ago

July 4, 2024

Press Room

The savings and loan (S&L) crisis terrorised America’s banks for years. Starting in the mid-1980s, a mix of aggressive lending growth, poor risk controls and a property downturn contributed to the collapse or consolidation of over 1,000 small lending institutions. China’s smallest banks are now suffering from many of the same ailments. But until recently few have collapsed or merged with others.

That is starting to change. In the week ending June 24th, 40 Chinese banks vanished as they were absorbed into bigger ones. Not even at the height of the S&L crisis did lenders disappear at such a clip.

Finance

Bajaj Finance share price gains as AUM spikes 31%, new loans booking grow 10% YoY in Q1 | Stock Market News

Published

18 hours ago

July 4, 2024

Press Room

Bajaj Finance share price gains as AUM spikes 31%, new loans booking grow 10% YoY in Q1 | Stock Market News

Bajaj Finance share price gained over a percent in early trade on Thursday after the non-banking finance company (NBFC) reported a strong business update for the first quarter of FY25.

Bajaj Finance’s total assets under management (AUM) grew by 31% to ₹354,100 crore as of June 30, 2024, as compared to ₹270,097 crore as of June 2023.

AUM in Q1 FY25 grew by approximately ₹23,500 crore, Bajaj Finance said in a regulatory filing.

The NBFC’s new loans booked recorded a 10% year-on-year (YoY) growth at 10.97 million in the quarter ended June 2024 as against 9.94 million in the same period last year.

The company resumed sanction and disbursal of loans under ‘eCOM’ and ‘Insta EMI Card’ and issuance of EMI cards after the RBI removed the restrictions on these businesses on 2 May 2024.

Deposits book in Q1FY25 increased 26% to ₹62,750 crore as compared to ₹49,944 crore, YoY.

Bajaj Finance said its customer franchise increased to 88.11 million in June 2024 from 72.98 million in June 2023. In Q1 FY25, the customer franchise increased by 4.47 million.

Moreover, net liquidity surplus stood at approximately ₹16,200 crore at the end of June quarter, it said, adding that the company’s liquidity position remains strong.

Bajaj Finance shares have recently gained momentum, rising over 11% in the past month. Despite this uptick, Bajaj Finance stock has underperformed this year, delivering no returns year-to-date (YTD) and declining more than 7% over the past twelve months.

At 9:20 am, Bajaj Finance shares were trading flat at ₹7,251.00 apiece on the BSE.