Reuven Ben-Menachem, Chairman and CEO of Fundtech, said: "After detailed research into the payments requirements of the world's leading financial institutions, we found that a common source of dissatisfaction was the lack of support available for flexible, but controlled, nostro account
Some two years ago, the RBZ turned down requests from Standard Chartered Bank and Barclays Bank to keep their nostro account
balances above the maximum permitted 25%.
The Standard Chartered Saadiq EUR Nostro Account
makes use of a Shariah-compliant account sweep facility.
The Islamic Euro Nostro account
will allow NBD to earn Shariah-compliant profits on its account balances at Standard Chartered Bank Germany Branch in Frankfurt, said a statement from the bank after signing the agreement at the recent banking summit 'SIBOS 2012' in Osaka, Japan.
A Nostro account
is one that is established in a foreign country and usually in the currency of that country for the purpose of carrying out transactions.
When individuals and businesses send money to other countries the funds are passed through a Nostro account
The bank says its Islamic Nostro Account
is the first of its kind to be offered by a mainstream Western bank.
This collaboration will enable Aleri Liquidity Management System (LMS) users to absorb nostro account
data in real time from the Cable & Wireless RTN direct service, improving the ability to reconcile currency positions in real time, reducing risk exposure and increasing operational efficiencies.
In addition, the platform enables banks to optimize services provided between other financial institutions, such as cash and nostro account
management, automate agent bank billing and reconciliation, and advance correspondent banking analytics and managerial insights.
Bank Alfalah Limited, one of the leading banks in Pakistan, is the first to sign an agreement with Standard Chartered Bank for Islamic Euro Nostro Account
at the recently concluded Bankers Conference 2012 , held in Istanbul, Turkey.
Standard Chartered launched the industry's first Islamic Euro Nostro account
, enabling Islamic banks across the world to earn Sharia-compliant profits on their account balances at the bank's branch in Frankfurt.
Offerings such as the Islamic commodity hedging product and Sharia-compliant US dollar Nostro account
have earned the bank the reputation as a provider of innovative, cutting-edge Islamic solutions and gained recognition as a thought leader and innovator in the market.