60 Seconds with.....Ashraf Piranie
Share
You were formerly joint managing director of the Islamic Bank of Great Britain so What lured you to the mutual sector in 2007?
I have believed in the principles of mutuality for a long time. I achieved a lot at the Islamic Bank but the Nottingham offered an opportunity to work in a business that straddles mortgages, savings, estate agency and financial planning.
What do you do at the Nottingham?
I have responsibility for a number of departments including treasury and credit risk, as well as some key projects. I also spend a lot of time working with colleagues on strategic initiatives and liaising with the Financial Services Authority, the Bank of England, ratings agencies and politicians.
How has Islamic finance changed in the past five years?
On the wholesale side Islamic finance has grown significantly. Activity levels run to hundreds of billions of pounds, with London at the heart of some huge transactions. On the retail side the community used to be largely ignored by mainstream lenders but not now. Today, providing Islamic financial products is an objective of many blue chip organisations.
Does the Nottingham have plans for an Islamic range?
We have been looking at this for some time. We can see a business case for entering the market and are considering a number of options.
What is the biggest issue facing the mutual sector?
Balancing the needs of savers and borrowers in a low interest rate environment is a challenge. The downturn and rising unemployment have intensified the focus on arrears management. Fortunately, we have the lowest arrears in the sector.
Should the government do more to help smaller building societies?
Yes. The mutual sector has been resilient through previous downturns and so far this time has not relied on taxpayers for bailouts. But we need a level playing field so the initiatives introduced for government-backed banks do not lead to a two-tier system.
If you could change one thing about the mutual sector, what would it be?
Mutuals should maintain their own identities but work more closely on sharing costs so they can continue to deliver value.
