1. Workshop on Islamic finance in the national accounts
State of Palestine
Palestinian Central Bureau of Statistics
Workshop on Islamic finance
in the national accounts
“Islamic banks in Palestine”
Ankara/ Oct, 2018

2. CONTENT Overview of Islamic banks
Financing and investment for Islamic banks in 2017
Output of Islamic banks by types
Financial instruments of Islamic banks in Palestine
Importance of Islamic banks data for users
FISIM in Islamic bank
Methodology of FISIM
Relationship between property income and FISIM
Challenges
Future Plan

3. Islamic banks in 2017:
Number of Financial institutions in Palestine are 51 institutions without money exchangers.
Number of banks in Palestine are 15 Banks of which 3 of them are Islamic banks, employed 1199 employees and have 58 branches and 121 ATM.

4. Financing and investment for Islamic banks in 2017:
Value of financing and investments of depositors for year 2017 (Value in USD billion)

5. output of Islamic banks by type for year 2017:

6. Main types of Financing
Financial instruments of Islamic banks in Palestine
Main types of Financing
Main types of Investments
Murabha
Ijara
Istesna'a
Amanah
Mudarba

7. Importance of Islamic banks data for users :
Comparison between Islamic banks and conventional banks in capitalization ratio, return in assets and equity.
Effect of Islamic banks on economic growth.
Role of Islamic banks to finance development and small enterprises.
Percentage of financing for agriculture and industry sectors reached 5% in Palestinian Islamic banks for year 2017.

8. FISIM IN Islamic banks:
The main activities for Islamic banks is financial intermediation.
Not taking FISIM into consideration in Islamic banks as not part of output will cause low or negative operating surplus.
FISIM in Islamic banks
= Financing * (financing dividend rate - reference rate)
+ investments * ( reference rate – investment dividends rate)

9. Financing revenues for Islamic banks
Methodology of FISIM: (Yearly finance and insurance questionnaire, 2018)
Financing revenues for Islamic banks
Recieved Intrest
Type of Currency
Total
External
Domestic
USD
Jordanian Dinar
Shekel

10. Profit sharing on Investment accounts in Islamic banks
Methodology of FISIM: (Yearly finance and insurance questionnaire, 2018)
Profit sharing on Investment accounts in Islamic banks
Paid Intrest
Type of Currency
Total
External
Domestic
USD
Jordanian Dinar
Shekel

11. Methodology of FISIM: (Yearly finance and insurance questionnaire, 2018)
Value of Investments accounts in Islamic banks
Value of Financing in Islamic banks
Type of Currency
USD
Jordanian Dinar
Shekel

12. Reference rate for financing and investments of Islamic banks
Methodology of FISIM :
Estimating reference rate
Reference rate for financing and investments of Islamic banks
Currency
reference rate
US Dollar
Jordanian Dinar
Israel Shekel

13. SNA Actual bank Interest Interest Payable receivable
Relationship between property income and FISIM
SNA
Interest
Payable
FISIM
SNA
Interest
Receivable
FISIM
Actual bank
Interest
Payable
Actual bank
Interest
receivable

14. Challenges:
The difference between classification of SNA 2008 and classification used in Financial reports of Islamic banks.
Islamic banks still play a minor role in the Palestinian Economy.

15. Future Plan
Working on preparing integrated national accounts according to SNA 2008 for Islamic banks (Financial account, Capital account and Balance sheet).
SNA classification of financial instruments of Islamic banks (financial accounts for Islamic bank sectors).

16. Thanks for your attention
Rasha Masoud