SIB Treasury Division
Treasury function undertakes a range of complex and skilled tasks by liaising with internal /external stakeholders, while playing a key role in the smooth functioning and value creation of the organization. Treasury acts as a funding center for SIB by managing the liquidity in a profitable manner. In addition, Treasury also provides a prompt and efficient service by offering innovative solutions for SIB's clients to meet their expectations and needs.
Utilization of surplus funds to generate returns and Mobilization of funds during shortfalls in an efficient manner by using available tools to reduce cost and mitigating cash flow risk.
Asset Liability managementShow
The Bank holds regular Assets & Liabilities Committee (ALCO) meetings to review and discuss the balance sheet, management and Treasury’s activities. The committee reviews and decides on various policy matters & financial parameters and issue policy directives
The Key function for ALM is to manage Financial Ratios that are regularly monitored and retained in accordance with the Basel III regulations.
Alternate Funding is a liability tool through which SIB funds its medium term liquidity gap with products designed to diversify from a standard business model.
Cross-border Murabaha Deposit
Risk Mitigation (Hedging)Show
Treasury has a suite of sharia`a compliant FX and profit rate derivative based products to mitigate the bank’s market risk and hedge the related exposures.
PRS (Profit Rate Swap)
The Bank provides services of foreign currency sale & purchase to its clients through various banking channels, with access to over 18 currencies – onshore and offshore.
Customers with exposure to market risk – profit rate or FX, are able to hedge their risk through Treasury which offers advisory and product solutions apart from bespoke sharia`a compliant structured products for their investment needs.
FX Trading (SIB FX Investment)
The bank provides FX trading product “SIB FX Investment” which is an Islamic banking alternate of Margin Trading. This enables clients to purchase major Foreign Currency and profit from its fluctuation. For clients of the SIB FX Investment product, the bank quotes exchange rates from 8:00 am until 10:00 pm, enabling clients to trade across all international markets i.e. Middle East, London & New York.
Corporates clients hedge their LCs FX exposure using the Islamic FX Wa’ad structure. The client will be able to fix the FX rate for a specific amount on a future specific date with this product.
PRS (Profit Rate Swap)
Using this product clients can move between a fixed rate or floating rate transaction, thereby hedging their existing profit rate exposures through the execution of a series of underlying contracts to trade certain assets under the Sharia principles of Murabaha financing and Murabaha investment.
SIB offers its valuable clients investment opportunities in sukuk where they can earn a higher return depending on the risk appetite and choice.
Leveraged sukuk trading is offered in two variants:
- No leverage - 100% investment by customer
- Leverage - 3 times of customer’s financing amount is offered by SIB
Customer Wakala Deposits
Competitive profit rates are quoted for CWDs by Treasury according to market conditions.