BANK ISLAM, BARCLAYS TO JOINTLY DEVELOP ISLAMIC FINANCIAL PRODUCTS

KUALA LUMPUR, May 19 (Bernama) -- Bank Islam Malaysia Bhd and Barclays Bank
plc Wednesday signed a memorandum of agreement (MOA) on the customisation of
Islamic investment products and hedging solutions.

Both banks had recently entered into the syariah-compliant deal where
Barclays acted as counter-party in the underlying transaction of an investment
product, worth RM110 million (US$33.92 million), that Bank Islam offered to
Barclays' customers.

Bank Islam’s managing director Zukri Samat, said the
collaboration would offer an excellent platform for cooperation between the two
banks.

"The agreement covers syariah-compliant risk management solutions and will
formalise the already-established collaboration between the two banks.

"Going forward, we hope to launch more products in collaboration with
Barclays," he told reporters after signing the MOA at the Sixth World Islamic
Economic Forum here Wednesday.

Zukri said more innovative products, such as structured investment, would be
introduced in the market to offer customers more options.

He said under the MOA, Bank Islam and Barclays would, among others, work
together to develop Islamic Treasury products.

In addition, he said, Bank Islam was looking at joining forces with Barclays
in designing products for its own hedging strategies and purposes.

"Each party to the agreement offers a unique set of knowledge and expertise
which, when combined, will create a synergy that can catapult this area of
Islamic banking to greater heights," he said.

-- BERNAMA