JOHANNESBURG – First National Bank said it had launched trade finance as part of its Islamic banking product suite, amid growing demand for Sharia-compliant import finance from business customers. FNB’s Islamic trade finance offering is modelled on the Murabaha arrangement, which entails the bank entering into an agreement to purchase and assume legal possession of items being imported and selling them to the customer upon delivery.
The facility includes access to various trade finance products, such as import letters of credit, foreign bills for collection, forward exchange contracts, guarantees and open account payments. FNB Islamic Banking chief executive Amman Muhammad said: “There’s strong appetite in the market for Islamic trade finance products among South African businesses. Therefore, access to this finance will create opportunities for more businesses to actively participate in trade activities which will have a positive impact on gross domestic product in the long term.”
With southern Africa being home to an estimated 250million Muslims, Muhammad anticipated significant growth in Islamic trade finance as the continent made progress in concluding the African Continental Free Trade Area agreement, aimed at facilitating a single market for goods and services.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:
Business Business Latest News, Business Business Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
FNB launches Islamic finance facility as demand for Shari’ah compliant import finance grows'There’s strong appetite in the market for Islamic trade finance products amongst South African businesses,' says a CEO.
Source: TheCitizen_News - 🏆 6. / 75 Read more »
FNB vindicated as court dismisses discrimination claims against black clients | IOL Business ReportFNB welcomed the judgment delivered by the Equality Court to dismiss the matter relating to allegations of racial discrimination on interest rates.
Source: IOL - 🏆 46. / 51 Read more »
Middle-income consumers spend 25% of their income on debt - FNB | IOL Personal FinanceSouth Africa’s middle-income consumers on average spend 25 percent of their take home monthly income to pay interest accumulated on debt.
Source: IOL - 🏆 46. / 51 Read more »
FSCA finds no evidence of insider trading worth R418m against Steinhoff | IOL Business ReportThe FSCA said that it had wrapped up a further three insider trading investigations into the Steinhoff International shares.
Source: IOL - 🏆 46. / 51 Read more »
Walter Sisulu University student nominated for business empowerment award | IOL Business ReportThe Walter Sisulu University announced that one of their public relations BTech students had been nominated for the business empowerment award.
Source: IOL - 🏆 46. / 51 Read more »
#PICInquiry: Steinhoff shares fell within a year of PIC participation in Lancaster deal | IOL Business ReportExecutive says she cannot confirm how the transaction was originated and whether there had been prior iterations of the investment proposal.
Source: IOL - 🏆 46. / 51 Read more »
Ithala expands banking facilities with launch of second ATM in Greytown | IOL Business ReportIthala has launched an additional ATM facility in Greytown in the Natal Midlands recently to alleviate long queues and improve customer convenience.
Source: IOL - 🏆 46. / 51 Read more »