Launch of first Islamic Euro Nostro Account
Standard Chartered has announced the launch of the industry’s first Islamic Euro Nostro Account. Islamic banks across the world will now be able to earn Shariah compliant profits on their account balances at Standard Chartered Bank, Germany Branch in Frankfurt. 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”, held in Istanbul, Turkey.
The Standard Chartered Saadiq EUR Nostro Account will be available to clients globally, across Standard Chartered’s network. It utilises a Shariah compliant account sweep facility; at the end of each business day, the available EUR balance in the client’s Saadiq clearing account will be invested using the Islamic finance mode of Murabaha.
This 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. There is also the ability to customise transaction fees on multiple levels – by customer, beneficiary, country, branch or code word. Profits 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.”
“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 innovative product,” said Ali Sultan, Group Head, Treasury & Financial Institutions Division, Bank Alfalah.
The Third Middle East, North Africa and Pakistan and Turkey Bankers Conference was held from the 17th to 19th of September, 2012 in Istanbul, Turkey. 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.
Standard Chartered – leading the way in Asia, Africa and the Middle East
Standard Chartered is a leading international banking group. It has operated for over 150 years in some of the world’s most dynamic markets and earns more than 90 per cent of its profits in Asia, Africa and the Middle East. This geographic focus and commitment to developing deep relationships with clients and customers has driven the Bank’s growth in recent years. Standard Chartered PLC is listed on the London and Hong Kong stock exchanges as well as the Bombay and National Stock Exchanges in India.
With 1,700 offices in 70 markets, the Group offers exciting and challenging international career opportunities for nearly 87,000 staff. It is committed to building a sustainable business over the long term and is trusted worldwide for upholding high standards of corporate governance, social responsibility, environmental protection and employee diversity. Standard Chartered’s heritage and values are expressed in its brand promise, ‘Here for good’.
About Standard Chartered’s USD clearing operations
Established in 1974, Standard Chartered’s US dollar clearing operations are the seventh-largest in the world, according to the Clearing House for International Payments (CHIPs).In June 2010, Standard Chartered surpassed $200 billion in daily volume, a new record for the bank.
About Bank Alfalah Limited
Bank Alfalah is a progressive, full service banking institution operating in Pakistan since 1997. Owned and operated by Abu Dhabi Group with assets worth Rs. 468 billion, the Bank has a network presence of 407 branches spanning 158 cities across the country with international presence in Afghanistan, Bangladesh, a wholesale banking unit in Bahrain and a representative office in the UAE. The Bank services more than 1 million corporate, institutional, personal, small business, agricultural, Islamic and asset financing customers.
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