StanChart launches new Islamic account
Dubai, October 1, 2012
Standard Chartered Bank has announced the launch of the industry’s first Islamic Euro Nostro Account, enabling Islamic banks across the world to earn Shariah-compliant profits on their account balances at the bank’s Frankfurt branch.
Bank Alfalah Limited, one of the leading banks in Pakistan is the first to sign an agreement with Standard Chartered Bank for Islamic Euro Nostro Account at the recently concluded Bankers Conference 2012 which was held in Istanbul, Turkey.
The Standard Chartered Saadiq EUR clearing account utilises a Shariah-compliant account sweep facility, a statement from the bank said. At the end of each business day, available EUR balance in Client’s Saadiq clearing account will be invested using the Islamic finance mode of Murabaha. Profit generated from these transactions will be credited on a monthly basis.
“Following the success of our Saadiq US Dollar Nostro Account last year, we have identified a need to extend this innovation to our Euro clients,” said Afaq Khan, Standard Chartered Saadiq’s chief executive for the bank’s global Islamic banking business. “We would like to congratulate Bank Alfalah for being the first financial institution to benefit from this unique Shariah-Compliant structure.”
“We congratulate Standard Chartered for leading the way in Islamic Banking and introducing this innovative product. Standard Chartered Bank has always been one of our valued correspondent banks and we are proud to be the first to sign up for this product,” said Ali Sultan, group head, treasury & financial institutions division, Bank Alfalah.
The Saadiq EUR Nostro accounts will be available to clients globally, across SCB network, the statement said. The facility allows financial institutions to earn profits on available EUR balances in their accounts and provides Shariah-compliant account reporting statements as well as a full range of commercial and treasury payment capabilities.
It also provides a full suite of beneficiary deduction and principal protected products for incoming and outgoing payments and the ability to customise transaction fees on multiple levels – by customer, beneficiary, country, branch or code word.
Anurag Bajaj, global head of clearing and liquidity management, Standard Chartered Bank, said: “The launch of the Islamic Euro Nostro accounts is a direct consequence of our client-led approach. We have been able to deliver another industry first through frequent client interaction and feedback.”
The Third Middle East, North Africa and Pakistan and Turkey, Bankers Conference was held in Istanbul, Turkey, last month. The conference was titled, “Fragile West, Resilient East” and addressed the opportunities, trends and challenges of the banking industry in Mena.
More than 100 senior bank representatives from Morocco, Egypt, Lebanon, Jordan, GCC, Iraq, Turkey and Pakistan attended the three-day conference.
To ensure Standard Chartered’s products comply with the principles of Shariah, the bank is advised by an independent committee comprising three of the world’s most renowned Shariah scholars – Dr Abdul Sattar Abu Ghuddah, Sheikh Nizam Yaquby and Dr Mohamed Ali Elgari. – TradeArabia News Service