Standard Chartered launches Islamic Euro Nostro Account

Standard Chartered Bank (StanChart) yesterday announced the launch of the industry's first Islamic Euro Nostro1 Account in the UAE. Bank Alfalah is the first bank to sign up for this product.
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 Ltd., 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 utilizes 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.
Afaq Khan, Standard Chartered Saadiq's Chief Executive for the bank's Global Islamic Banking business, said: "We would like to congratulate Bank Alfalah for being the first financial institution to benefit from this unique Shariah-compliant structure."
The Saadiq EUR Nostro Accounts will be available to clients globally, across SCB network. 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 customize 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."