Plans Shariah credit cards, other services
Standard Chartered Bank is set to launch Islamic banking services in Bahrain by the end of the year. The initiative will herald a new era of Islamic banking products and services, including the launch of Islamic Credit Cards, a top official at the bank said.
Jonathan Morris, the CEO of Standard Chartered Bahrain, in his first interview since his arrival in the Kingdom, said his bank would introduce the Islamic banking services in Bahrain under the bank's global brand name for Islamic products, namely Standard Chartered Saadiq.
"We are keen to launch Islamic banking products by the end of the year as a window service," he said. Standard Chartered, being one of the oldest banks in Bahrain, expects strong demand for Islamic banking services in the Kingdom and beyond.
"We serve major markets like Saudi Arabia and other leading countries across the region from our Bahrain operations," said Morris.
"Islamic banking will enhance the capacity of Standard Chartered Bahrain to cater for the needs of a broader client base across the region."
Morris, in commenting on the current crisis being faced by the world's banks due to the international credit squeeze, said his bank was highly liquid.
Afaq Khan, CEO Standard Chartered Saadiq, who also joined Morris in the interview, said the bank entered into Islamic banking in 1993 and is now a key players in major Islamic banking markets such as Bangladesh, Pakistan, UAE, Indonesia and Malaysia.
The immediate services to made available in Bahrain - and other territories being served from the Kingdom - include current accounts and personal loans, while the CEO expects to launch mortgages in early 2009.
"We have expertise in technical structuring of Shari'ah compliant products and services. We had launched first Islamic treasury bills for the Government of Pakistan and we work closely with Ministry of Finance Islamabad," said Khan.
Standard Chartered Saadiq had also structured and developed the maiden sukuk for the Indonesian government, he said.
In July this year, the bank announced the relaunch of the Shariah-compliant version of its Online Treasury (OLT) proprietary, foreign-exchange trading platform.
The online foreign exchange (forex) service delivers real-time, automated prices from Standard Chartered Bank's trading floors straight to any desktop.
"Standard Chartered is the first bank to launch on-line services in Islamic forex utilising the Wa'ad structure to allow Islamic companies and institutions to hedge forward forex exposures under a Shariah compliant structure."
© Bahrain Tribune 2008
