HSBC launches sharia service<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
The Hongkong and Shanghai Banking Corporation Limited (HSBC)
\nlaunched a new sharia banking service on Monday, making it the
\nfirst foreign bank in the country to provide the service.<\/p>\n
Chief executive officer of HSBC Indonesia Richard McHowatt
\nsaid that Indonesia, the world's most populous Muslim country,
\nwas seeing an increased demand for sharia banking products and
\nservices.<\/p>\n
"This, coupled with the recent initiative by Bank Indonesia to
\npromote sharia banking in the country, has created an opportunity
\nfor us to launch HSBC sharia in Indonesia," said McHowatt in a
\npress statement.<\/p>\n
He explained that given a total population of more than a
\nbillion Muslims worldwide and an estimated industry size of
\nUS$200 billion, Islamic finance was one of HSBC's most important
\ninitiatives in community banking.<\/p>\n
He said that HSBC globally managed $1 billion in collective
\nfund with a total Islamic customer base of 115,000 and a total
\nvolume of crossborder transactions of $5 billion.<\/p>\n
The bank first established a sharia banking division in
\nMalaysia in 1994 and has since extended the franchise to the
\nMiddle East, the United States, the United Kingdom and Indonesia.<\/p>\n
As regards Indonesia, HSBC said that its sharia business would
\ninitially focus on the corporate and institutional sectors,
\nproviding structured financial capabilities and debt capital
\nmarkets advisory services.<\/p>\n
In the medium term, HSBC would provide a broad range of wealth
\nmanagement and investment products and services.<\/p>\n
The Islamic banking system works in line with the principles
\nof Islamic sharia law. While conventional banks get interest from
\nborrowers, Islamic banks take a part of the profits made by
\nborrowers under the profit sharing arrangement.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/hsbc-launches-sharia-service-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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