Products & Services

Products and services:

 

BSM offers a comprehensive array of financing and investment products carefully selected, based on the accumulated experience of Islamic finance institutions all over the world for almost half a century. This range of products has been approved by the Sharia Compliance Board of the bank and by dozens of other Sharia Compliance boards, academies and institutions and by leading Muslim scholars across the Islamic Uma.

 

1 Financing products:

§  Murabaha for a client who orders the purchase and agrees to buy a good;

The bank buys a commodity requested by a customer; who commit himself to repurchase the same commodity from the bank once it purchases it. The bank buys the commodity and sells it to the customer with an agreed margin and term.

 

§  Mussawama through negotiation and / or forward sale:

The bank sells the goods it has previously acquired to a customer at a price and on a pre-agreed payment period.

 

§  Sale on installments:

The bank buys a commodity and sells it to a customer with a payment on several installments. The transfer of ownership is done once all maturities are paid.

 

§  Leasing (Ijara) in two forms:

Bank acquires assets (real estate, equipment, etc.). It rents it to a customer for an agreed period and rent. The leasing could end in a sale of the asset to the customer at the end of the period, as it may be a simple leasing.

 

§  Salam sale:

The bank buys from a producer (industrial, farmer, etc..) a specific quantity of products, with precise specifications at a fixed price. The bank pays the price in advance. The producer delivers goods to the bank later, after a pre agreed time.

 

 

2 Investment products:

The bank offers its clients a number of investment options, the most important of which are:

§  Musharaka:

The Musharaka occurs in two forms:

o   A permanent Musharaka: The bank contributes with a customer to the funding of an operation or a project; sharing profits and losses in proportion to their respective contribution;

o   A diminishing Musharaka: The bank sells its shares to the client gradually who becomes at the end of the contract, the sole owner of the operation or the project or the asset. Musharaka can be in a specific short-term operation as it may take the classic form of participation in the capital of a legal entity.

 

§  Mudaraba:

It is a kind of venture capital. It consists of putting together the capital and expertise of two distinct parties with profit sharing. It is a combination of capital and expertise. The bank may be the provider of capital as it can be "Moudharib" (contributor of expertise, know-how or business). The owner of the capital advances funding (fully or partially) to fund a specific business operation; the "Moudharib" brings its expertise, know-how or brings a business opportunity. The contributor of capital assumes, alone, the commercial risks. The Moudharib, who manages the venture, bear all losses related to negligence, malfeasance or to resources’ misallocation.

 

§  Al Istisnaa:

The Bank contracts with a client (entrepreneur, producer, industrial entity...) for the construction of a building, or manufacturing of an equipment according to precise specifications. The good is to be delivered within an agreed timeframe. Payments are made subsequently in full or in installments. Delivery of the good is made at a later date.

 

 

§  Real estate investment:

The bank invests in real estate. It may buy, sell or rent real estate.

 

 

3 Other banking services:

The bank offers all traditional banking services that do not involve interest, including:

§  Electronic Services:

o   Credit or debit cards;

o   Internet banking;

o   SMS services;

o   ATM services.

 

§  Remittance services:

o   SWIFT

o   National and international transfer

 

§  Letters of Credit:

o   Incoming letter of credits

o   Outgoing letters of credit

 

§  Collections:

o   Incoming documents

o   Outgoing documents

 

§  Letters of guarantees

§  Issuing and clearing checks

§  Foreign currencies exchange (buying and selling foreign currencies)

§  Assets and wealth Management

§  Subscriptions to companies shares

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