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Embargo: For immediate release
Bank Negara Malaysia Signs Commodity Murabahah Agreement with Saudi Hollandi Bank
Bank Negara Malaysia is pleased to announce the execution of a Commodity Murabahah agreement with Saudi Hollandi Bank of Saudi Arabia in Dubai, United Arab Emirates on 16 May 2007. Saudi Hollandi Bank is the first Islamic banking institution outside of Malaysia to sign a Commodity Murabahah agreement with Bank Negara Malaysia.
The Commodity Murabahah Programme (CMP) introduced by Bank Negara Malaysia in March this year, is part of its diverse range of policy instruments in managing short-term liquidity in the Malaysian Islamic interbank money market.
Commodity Murabahah is a cash deposit product based on the globally acceptable Islamic concept of underlying commodity transactions to facilitate liquidity management and investment. The CMP is a commodity-based transaction that utilizes crude palm oil based contracts as its underlying asset. Earlier this year, Bank Negara Malaysia had executed master agreements with eight Islamic banking institutions in Malaysia.
This programme is part of Bank Negara Malaysia's continuous efforts to spur product innovation in facilitating the liquidity management of Islamic financial institutions. The participation of foreign Islamic financial institutions would further strengthen the cross-border inter-linkages as well as investment flows between Islamic financial centers.
Bank Negara Malaysia
17 May 2007 |
