Hong Leong Bank Hong Kong branch (HLB HK) which recently launched the first Islamic Banking Window (IBW) in Hong Kong has just completed Hong Kong's FIRST Commodity Murabahah Deposit (CMD) transaction with Malaysia's well-known Government Investment arm, Khazanah Nasional. At the same time, HLB HK also successfully concluded several cross-border interbank transactions with RHB Islamic Bank Berhad of the RHB Banking Group. These milestones will help pave the way for Islamic banking in Hong Kong.
CMD, which is a globally accepted form of deposit, not only provides lower country risk that is attractive to sovereign funds and overseas investors, but also provides competitive returns to clients. Besides assisting in managing and diversifying cash flow requirements, CMD also allows the relocation of excess petro-dollar in the Middle East to Asia.
"HLB HK's first CMD transaction in Hong Kong with Khazanah Nasional is a positive sign of growth for the Islamic Banking industry in Hong Kong. This transaction contributes actively to the promotion of a vibrant Islamic financial market in Hong Kong and the region," said Ms Yvonne Chia, Group Managing Director of Hong Leong Bank.
Besides CMD, the Bank's IBW in Hong Kong will also offer more innovative more Shariah-based wholesale and investment banking solutions in the near future. HLB, with its culture that encourages innovation, creativity and collaboration, with its wholly owned subsidiary Hong Leong Islamic Bank (HLISB) has proven that it has the agility and flexibility to customize Islamic financial solutions according to clients' needs. With proven and established operations in Malaysia, HLB HK will leverage on the expertise that is readily available out of its headquarters in Malaysia.
Besides completing the first CMD transaction in Hong Kong with Khazanah Nasional, HLB in HK also did its first cross-border interbank transaction with RHB Islamic Bank in Malaysia. RHB Islamic Bank is a full-fledged Islamic Bank which offers Islamic products and services of international Shariah standards. The transaction will improve cross-border relationships among Islamic banks as a whole.
Also recently, HLB HK signed an interbank partnership with CIMB Bank Berhad's Hong Kong branch. This new interbank partnership will allow Hong Leong Bank to increase the number of counter-parties that they will be able to work with in Hong Kong.
"We at HLB pride ourselves in continuously offering innovative products and solutions and being in the forefront of the industry," added Ms Chia. "I believe that the recent launch of our IBW in Hong Kong and our strategic partnerships with Khazanah, CIMB and RHB Islamic will encourage more participation by other banks in the near future," added Ms Chia .
With Central Bank of Malaysia's first ever approval for a Malaysian bank to set up an Islamic Banking platform overseas and the Hong Kong Monetary Authority's first ever permission for the same in the territory, HLB will continue to offer more innovative products and services from its Hong Kong branch in the near future.
-END-Press Release - 09/12/2008