Bank Islam Malaysia Berhad and Barclays Bank PLC Sign Memorandum of Agreement for Collaboration on Customization of Islamic Investment Products and Hedging Solutions

 

20 May 2010
Source : Bank Islam

Bank Islam Malaysia Berhad (“Bank Islam”) and Barclays Bank PLC (“Barclays”) signed yesterday a Memorandum of Agreement for Collaboration on Customization of Islamic Investment Products and Hedging Solutions (“Agreement”) between the two financial institutions that will strengthen their cooperation and partnership in developing Islamic financial products.

Under the Agreement signed, Bank Islam and Barclays will, among others, work together in developing Islamic Treasury products for risk management to be offered to prospective customers. In addition, Bank Islam is also looking at joining forces with Barclays in designing products for its own hedging strategies and purposes. The Agreement specifically covers the area of Shariah compliant risk management solutions.

The Agreement builds on and formalizes the already established collaboration between the two financial institutions. Bank Islam and Barclays recently entered into a Shariah compliant deal where Barclays acted as counterparty in the underlying transaction of an investment product that Bank Islam offered to its customers totaling  approximately RM110 million.

Bank Islam’s Managing Director, Dato’ Sri Zukri Samat said, “This Agreement represents an excellent platform for cooperation between the two financial institutions. Each party to the Agreement offers a unique set of knowledge and expertise which, when combined together, will create a synergy that can catapult this area of Islamic banking to greater heights. Product innovation seems to be the order of the day and sometimes, this can only be achieved through strategic alliances and collaborative efforts”.