HSBC Amanah-A Global Islamic Financial Service

Posted by BankInfo on Sun, Mar 06 2011 02:44 pm

HSBC, known as world's local bank, has recently introduced their very popular HSBC Amanah banking in Bangladesh. HSBC Amanah is the global Islamic financial services division of the HSBC Group. Amongst the many international Islamic financial services team, HSBC Amanah represents the largest in Middle East, Asia-Pacific, Europe and the Americas. It was established in 1998 with more than 300 professional to serve the purpose. Their main concern are the customers and their needs.

HSBC Amanah offers commercial banking products along with deposits and investment products, account services, corporate financing solutions, trade services, guarantee solutions and cash management services etc. Not only these, HSBC Amanah also provides Corporate Internet Banking- an international secured service based on the award winning HSBC net platform, in Bangladesh.

Amongst so many popular services HSBC Amanah in Bangladesh has introduced Amanah Inport Finance, Short-Term Financing, Documentary credit etc.

Amanah Import Finance

For business purpose HSBC's trade specialists and financial consultants offer expertise and practical support to the business owners as HSBC is well reputed for expertise in global trade finance. Amanah Import Finance is based on the Shariah principles of Goods Murabaha, catering to import finance through Documentary Credit and Shipping Guarantees.

Main Features:

Ø Competitive pricing with the market

Ø Simple documentation and quick turn-around time

Ø In the goods Murabaha transactions, a client him/herself will be appointed as their agent to purchase the goods and negotiate the price and other specification with the supplier of goods.

Documentary Credit

Amanah Documentary Credit helps developing the overseas business relationship. A number of key factors need to be considered while developing business relationships with overseas suppliers and there comes the Documentary Credit. A documentary credit issued by HSBC Amanah provides assurance and security to both the buyer and the supplier by helping to mitigate the inherent risks of international trade.

Main Features:

HSBC Amanah documentary Credit is based on the Shariah principles of Murabahah or Wakalah. It has multiple features like following:

Ø Financial Strength

Ø Global Network

Ø Seamless and timely

Ø Expert Assistance

Ø Vendor Support

Short-Term Financing

This financing facility is known as Amanah Goods Murabaha which is a Shariah-compliant product that provides shot-term financing for a customer's working capital requirements and purchase of assets. This particular financing system involves the Bank purchasing goods/assets at a customer's request and selling the same to the same customer at a sale price on a deferred payment basis. It is a Shariah requirement that the breakup of cost and profit in the sale price be disclosed.

Product Features:

Ø It helps a customer to purchase with a wide variety like Raw Material, Spare Parts, machinery/equipment, finished goods etc.

Ø A customer may enjoy competitive pricing with the market

Ø 1-12 month tenor

Ø Simple documentation and quick turn-around time

Ø Various payment schemes

Product Structure:

How does it work? A customer of the bank will be appointed as their agent to purchase the goods and negotiate the price and other specifications with the supplier. Each time a customer needs prior approval of the bank to get engaged with a supplier. Based on the value of the purchase, bank will prepare an offer letter for the customer, which will be signed and sent by the customer to the bank advising to purchase the goods from the bank at a Murabaha price (cost plus profit).

The bank will sell the purchased goods/assets to the customer by accepting the offer and making the payment to the supplier. Customer will pay the bank on the agreed date.

HSBC Amanah has surely opened a new window to the business owners as well as regular clients in Bangladesh which will surely be a great opportunity for them to enhance the economic strength of the country with an Islamic way and view.