Islami Bank's financial strength makes it the best option for offshore depositors
After establishing itself as a dominant player in the banking sector, Islami Bank Bangladesh PLC is now looking to make a name for itself in offshore banking. Mohammed Monirul Moula, the bank’s managing director, discusses what products it is offering to customers and how its financial strength will help Islami Bank attract depositors
As a 42-year-old bank, Islami Bank has been dominating the banking sector with stellar performance and financial inclusion since 1983. Now, the bank looks to dominate the offshore banking sector as well.
Our financial strength makes us the best bank for offshore banking depositors.
Customers may choose to invest in our offshore banking products for a multitude of reasons. First, we can fulfill the demand for Shariah compliance in offshore banking. Transactions, earnings, and profits are entirely interest-free.
Keep updated, follow The Business Standard's Google news channel
Islami Bank is offering four types of offshore banking accounts: Al Wadiah Foreign Currency Account (AWCA); Mudaraba Foreign Currency Deposit Account (MFCDA); Mudaraba Foreign Currency Term Deposit Receipt Account (MFCTDRA); and the Mudaraba International Banking Account (MIBA).
We offer lucrative and attractive deposit rates. Currently, our profit rate is higher than that of developed countries. Profit is given at a maximum of 3.25% plus the benchmark reference rate. Considering this, the provisional rate surpasses international rates, encouraging customers to invest in our offshore banking products. Additionally, we ensure easy repatriation of principal and profits, allowing depositors to transfer their funds worldwide with unparalleled convenience.
Depositors will have tax exemption for OBU accounts — no tax or any other charges will be levied on the profit earned in these accounts. There is also no cap on maximum deposit balance.
We can see immense opportunities to bring institutional deposits in OBUs by offering tax exemptions, operational flexibility, and competitive profit rates. The Offshore Banking Act 2024 stipulates that no income tax or other direct or indirect charges will be imposed on the interest or profits earned by the OBUs, and no fees or levies will be imposed on the accounts of depositors or foreign lenders' accounts. This tax exemption could potentially lead to higher net returns for investors, making Bangladesh a more appealing destination for offshore banking activities.
One of their primary challenges is to raise awareness among non-resident customers about the benefits of depositing funds through offshore banking and the attractive profit opportunities available.
Since the enactment of Offshore Banking Act 2024, we are getting very positive responses from non-resident Bangladeshis. Customers from countries including Germany, US, and Cyprus are contacting us.
Offshore banking can significantly benefit foreign trade in Bangladesh by providing a robust framework for financial transactions that are essential for international commerce.
The recent Offshore Banking Act 2024 has been a pivotal move, allowing non-resident individuals and foreign entities to open offshore bank accounts, which is expected to bolster the nation's foreign currency reserves and attract foreign investment.
