Deutsche Bank to strengthen Shariah custody in Southeast Asia

Deutsche bank has also been appointed by CIMB to support its foreign custody services with its CustodyOne product.

The partnership involves Deutsche Bank complementing its existing Shariah custody function with CIMB’s, to offer clients in Malaysia regulatory-compliant services in line with guideline changes made by the Securities Commission in late 2022. Most targeted clients are fund managers governed by the Securities Commission’s guidelines for Shariah capital markets products.

Deutsche Bank has partnered with CIMB, a Malaysia-based bank, to provide Shariah custody, the servicing of funds that are compliant with Shariah law, to clients in Malaysia.

Moreover, in Southeast Asia, Deutsche Bank has launched new Shariah compliant custody capabilities in Singapore, which will complement its CustodyOne offering, aiming to make global access simple for clients. As a global bank with a strong presence in Singapore, Deutsche Bank is focused on meeting the growing demand for Shariah custody, particularly as domestic clients expand their operations across ASEAN.

Shariah funds globally held USD 105 billion in assets under management as of the end of Q2 2023 and Malaysia held the largest share of this total with 27%. Southeast Asia accounts for 80% of Asia Pacific’s total Shariah banking assets and market growth is forecasted at 8% over the next two years. Malaysia and Indonesia are the most dominant markets for Shariah banking in Asia Pacific.

Other recent development from Deutsche Bank

In October 2023, Deutsche Bank announced that it completed the acquisition of Numis in a bid to solidify its engagement with corporates across the UK. This move was aligned with Deutsche Bank's Global Hausbank strategy, positioning it as the primary point of contact for clients in the financial services sector. The merger has given rise to Deutsche Numis, and it aims to facilitate deeper engagement with corporate entities throughout the UK. According to the official press release, Deutsche Numis has a portfolio of over 170 corporate broking clients and has plans to expand its relationships with both existing and prospective clients, offering comprehensive financial and advisory solutions to support its objectives.

Deutsche Numis is set to assume a prominent role in advisory services, corporate broking, and ECM, encompassing IPOs, research, sales, and execution. As part of the Deutsche Bank Group, it can leverage broader corporate finance capabilities and tap into an extensive international network.