LEBANON. Standard Chartered Bank today announced the launch of the first Islamic US Dollar Nostro Account in the United States.
Islamic banks across the world will now be able to earn Shariah-compliant profits on their account balances at Standard Chartered Bank New York by using this facility.
The facility will operate on the Islamic finance principle of Commodity Murabaha. Profits will be paid on a monthly basis.
Al Baraka Banking Group is the first bank in the region to benefit from this product and signed an agreement with Standard Chartered Bank at the Thought Leadership MENA Bankers Conference in Lebanon.
“The Saadiq US Dollar Nostro Account is unique, innovative and illustrates our commitment to meeting the core needs of our clients seeking alternative banking such as Shariah principled,” said Afaq Khan, Standard Chartered Saadiq’s Chief Executive for the Bank’s global Islamic Banking business. “By further catering to the Islamic banking market, Standard Chartered Bank is able to strengthen its position as the bank of choice for clients doing business in Asia, Africa and the Middle East.”
Commenting on the importance of this product, Mr. Adnan Yousef, CEO of Al Baraka Banking Group said “this much needed solution is ground-breaking for our industry and surely it will pave the way for further developments . With this agreement, Al Baraka Banking Group and Standard Chartered Saadiq are ideally positioned to support the rapid developments in the industry.’’
The Saadiq US Dollar Nostro Accounts will be available globally, including the Middle East & Malaysia. 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 Saadiq has been at the forefront of developing Islamic finance sector since its global brand launch in 2007. To date it has introduced over 150 products and solutions across retail and wholesale banking with over 50 industry accolades.