GulfBase Live Support
Leave a message and our representative will contact you soon
25/05/2015 16:47 AST
Islamic banks in Malaysian are now able to offer investment accounts for their depositors under the Islamic Financial Services Act (IFSA) 2013 – which allows greater flexibility for Islamic banks to structure products, including deposit and investment accounts.
Islamic banks will conduct a suitability assessment on a customer to determine whether investment account is suitable for them, said the Association of Islamic Banking Institutions Malaysia’s (AIBIM) in a statement today.
“If a customer is found eligible, the bank would then recommend appropriate products with the customer’s risk appetite.
“Proposed syariah contracts which will define the intermediary’s role and bases for attributing returns generated to the intermediary and customer would be set up.
“The returns are based on performance of underlying assets and maturity as well as withdrawal conditions agreed at inception between the bank and customer.”
Customers, who opt for investment accounts which allow them to invest in the Islamic banks’ portfolio of assets, could potentially enjoy higher returns than deposit accounts.
AIBIM president Datuk Mohd Redza Shah Abdul Wahid said: “IFSA aims to encourage banks to diversify their product offerings. Hence, the Act requires us to clearly differentiate between investment and deposit accounts.
“This allows the banks to customise their products according to the customers’ profile and risk appetite. Those who are prepared to take higher investment risk could potentially earn higher returns”.
Just like any investment, he noted that the principal amount for investment accounts is not guaranteed.
Since these accounts are not deemed as deposits under IFSA, the funds are not protected under the Perbadanan Insurans Deposit Malaysia (PIDM) scheme, he added.
“The Islamic banks will conduct customer suitability assessments to ensure that customers choose investment accounts that commensurate with their risk appetite, financial profile and capacity. This is in line with the customer protection pillars under IFSA.”
With this new product offering, he said existing Mudharabah account holders can opt for investment or deposit accounts.
The Rakyat Post
Ticker | Price | Volume |
---|---|---|
SABIC | 114.77 | 5,915,941 |
Index | Closing | Change |
---|---|---|
NIKKEI 225 | 21,292.29 | -96.29 (-0.45 |
DAX | 12,002.45 | -94.28 (-0.77 |
S&P 500 | 2,614.45 | 32.57 (1.26 |
05/04/2018
Stock markets recoiled on Wednesday as China retaliated in an escalating trade war with the United States, leaving investors reluctant to take positions in anything but the safest of assets.
The Gulf Today
04/04/2018
Egypt will start meeting bond investors in Europe this week ahead of a potential euro-denominated bond issue, a document from one of the banks appointed to arrange the meetings showed on Tuesday.
Gulf News
04/04/2018
Foreign investment in France rose 16 per cent in 2017 to levels not seen for a decade as President Emmanuel Macron’s (pictured) bid to attract money from abroad gains pace, a government report said o
Oman Daily Observer
03/04/2018
Explaining Japan’s economy to foreign audiences is hard.
One big reason for this is that explaining something as large and complex as a $5 trillion economy is an inherently difficult task - the
The National
03/04/2018
China raised import duties on a $3 billion list of US meat, apples and other products on Monday in an escalating dispute with Washington over trade and industrial policy.
The government of
The Gulf Today