Bahrain Islamic Bank's Treasury Department offers a full range of services designed to cover Corporate and Individual customer requirements.
What is the BisB Treasury Department?
Considering the highly dynamic nature of the financial markets in our time, every business is exposed to various complex financial challenges such as liquidity and cash flow management, interest rate anomalies, market risks. The idea behind the Bahrain Islamic Bank's treasury department is to facilitate you with financing and risk management solutions that are tailored to your requirements to achieve the results you look for.
We are also synced to the Foreign Exchange markets. Our dealers continuously track the global markets and provide real time advice to our customers on exchange market and interest rate conditions.
Foreign Exchange Spot refers to an agreement to purchase or sell one currency for another at an agreed exchange rate. Payment and delivery of currencies are made two business days after the actual contract date or deal date. However, the bank also accepts Foreign Exchange transactions that typically take two business days.
The client can conclude a buy or sell contract which he does not have to deliver until some future predetermined date. Transaction settled more than two working days in the future allows the hedging of future exchange rate volatility risk.
International Commodity Murahaba
BisB is always seeking to utilize any surplus so the bank invests in this pool as temporary through buying and selling commodities in the same time without taking the risk of the commodity. This means the client ensures that his money is invested once the money flows into his account until the bank finds a better opportunity to invest.
Is insurance between the bank and his client for exchange interest/profit payments. This means the client can hedge his base currency without changing it - means the client is able to pay his obligation in different currencies through swapping his currency against another currency and delivery will be in future and only he pays a premium or receives a discount.
The bank invites their customers to invest in sovereign and corporate sukuk which is always a give better return with very low risk. The sukuk is normally used for funding purposes to facilitate general banking/corporate activities and also leverages the financial position.
CBB Sukuk Aslam
As before the C.B.B. issued this sukuk on quarterly bases to finance some government project in Bahrain through inviting all banks to participate to benefit from the return and zero risk.
BisB is seeking to acquire financial institutions or banks and take the necessary action to restructure and make it available for sale after a certain period normally ranging between two to three years and make capital gain.
The bank takes a stake in some new IPO in the market as a strategic partner for mutual benefits and sometimes the bank trades in some stock exchange to gain from the volatility of price shares. This is complying with Islamic Shari'a principal.