Meezan Bank, the first and largest Islamic commercial bank, has entered into an agreement with Mashreq Bank PSC, UAE, under which Meezan Bank would earn Shariah-compliant profit on its US Dollar clearing account balance held with Mashreq Bank. The innovative arrangement utilises a Shariah-compliant principle of Wakala.
Aimed at facilitating the growing market of Islamic financial institutions, this innovative product was initially developed to cater to Meezan Bank’s requirement of earning Shariah-compliant profits on its US Dollar clearing account. This product was developed and launched by Mashreq Bank in a record time and was later commercialised and made available to clients globally across Mashreq’s network. The product was approved by the Shariah divisions of both Banks.
Speaking at the occasion Meezan Bank Chief Operating Officer Mr. Ariful Islam commented: “The US Dollar Islamic arrangement with Mashreq Bank will prove to be a significant positive development in our attempts to provide the best clearing arrangements to our clients’ worldwide while ensuring that our ultimate objective of Shariah-compliance is achieved at the same time.”
Mashreq Bank Head of Financial Institutions Division Mr. Faisal Lalani said: ‘I sincerely thank Mr. Ariful Islam for enabling the development and finalisation of this product. Mashreq Bank has benefited greatly by incorporating this product into our list of product offerings, which we will now propose to our other clients as well”. “Mashreq Bank has always been one of our valued correspondent banks and it gives us immense pleasure to be the first bank to sign up for this innovative product which is a one of a kind sweep arrangement”, said Meezan Bank SEVP & Group Head of Treasury & Financial Institutions Abdullah Ahmed.
“We are thankful to Meezan Bank for having faith in us and giving us an opportunity to service them. Mashreq Bank is one of the most innovative and leading provider of Islamic Treasury and Capital Markets solutions to Islamic Institutions. We look forward to do more for Islamic banks in Pakistan.” said Director Islamic Treasury and Capital Markets Fawad Taufique Mashreq Bank.
Meezan Bank provides a complete range of Islamic banking products and services through a retail banking network of over 300 branches in 90 cities, supported by an extensive range of 24/7 banking services. The Bank had been consistently recognized as the best Islamic Bank in Pakistan by various local and international institutions over the past several years.
Mashreq Bank is one of UAE’s leading and highest performing banks in the region. The Bank operates with 12 overseas offices in nine countries, including Europe, US, Asia and Africa.
