OCBC launches deposit product in Singapore

Oversea-Chinese Banking Corp. (OCBC) says it has launched the first Shariah-compliant term deposit product in Singapore.

Aimed at businesses, financial institutions, mosques and non-profit organisations, the product will be denominated in Singapore dollars as well as US and Australian dollars, euros and pound sterling.

Director and CEO Datuk Albert Yeoh told the Malaysian Star: "Syariah-compliant structured investment products are currently unavailable in Malaysia and at the same time, there is much demand among the Islamic banking community.

"By introducing such product, we are responding to the demand from individual Islamic banking customers for more variety when tapping into investment opportunities."

Investors can deposit a minimum S$100,000 for each currency and returns will depend on the size, tenure and currency the deposit is placed in.

Interest payment is prohibited in Islam meaning financial institutions have to structure their products so the returns are either paid out as fees or as a share of profit.

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