FNB introduces Islamic trade finance offering

Tuesday 16 April 2019 10:31 CET | News

FNB has launched trade finance as part of its Islamic banking products.

Amidst growing demand for Shariah compliant import finance from business customers, The FNB Islamic Trade Finance offering is modelled on the Murabaha arrangement which entails the bank entering into an agreement to purchase and assume legal possession of items being imported and selling them to the customer upon delivery.

As part of the agreement, the customer is required to facilitate logistics relating to the purchasing and receipt of goods from the supplier/exporter.

The offering further includes access to various trade finance products such as, import letters of credit, foreign bills for collection, forward exchange contracts, guarantees and open account payments.

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Keywords: FNB, Islamic, trade finance, banking, customer, supplier
Countries: World