CIMB Niaga to offer Commidity Murabahah deposit

CIMB Niaga plans to roll out a new Syariah product, Commodity Murabahah deposit, possibly by end of this year.

CIMB Group's Head of Group Islamic Banking Division and Chief Executive Officer of CIMB Islamic Bank Bhd, Badlisyah Abdul Ghani, said the product, to be offered under CIMB Niaga Syariah, the Group's Islamic banking sub-brand in Indonesia, is awaiting approvals from relevant regulators in Indonesia.

"Hopefully, we can secure approvals for the product as early as possible," he said in an interview with Bernama.

He said the Commodity Murabahah deposit was one of the more major products among several others that the bank currently had in the pipeline in Indonesia.

Badlisyah said in the first stage, the product would be made available to the institutional depositors predominantly in the inter-bank market and subsequently to the broader retail depositors.

"It would be good if the product can be offered to the general public subject to relevant regulatory approvals sooner rather than later. Commodity Murabahah has proven to be popular with retail depositors in Malaysia and has made Islamic banks more competitive even against conventional banks. We hope to see the same competitive environment in Indonesia between Islamic and conventional banks as it will be good for consumers as a whole," Badlisyah said.

The full story is available at Bernama News.