Standard Chartered Bank (SCB) on Monday 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 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. 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 and Financial Institutions Division, Bank Alfalah.
Anurag Bajaj, Global Head of Clearing and Liquidity Management, Standard Chartered Bank, commented: "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."-PR
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