Standard Chartered has launched the “industry’s first” Islamic euro nostro account, the lender said. Islamic banks across the world will now be able to earn Shariah-compliant profits on their account balances at the Standard Chartered branch in Frankfurt. “Nostro” refers to a bank account held in a foreign country by a domestic bank, denominated in the currency of that country. Nostro accounts are used to facilitate settlement of foreign exchange and trade transactions.Bank Alfalah, one of the leading banks in Pakistan, is the first to sign an agreement with Standard Chartered for the nostro account.Standard Chartered’s Saadiq euro clearing account utilises a Shariah-compliant account sweep facility. At the end of each business day, available euro balance in the client’s Saadiq clearing account will be invested using the Islamic finance mode of Murabaha. Profit generated from these transactions will be credited on a monthly basis, Standard Chartered Qatar said in a statement.“Following the success of our Saadiq dollar nostro account last year, we have identified a need to extend this innovation to our euro clients,” said Afaq Khan, Standard Chartered Saadiq’s chief executive for global Islamic banking business. “We would like to congratulate Bank Alfalah for being the first financial institution to benefit from this unique Shariah-compliant structure.”Ali Sultan, group head, treasury & financial institutions division, Bank Alfalah said: “We congratulate Standard Chartered for leading the way in Islamic banking and introducing this innovative product. Standard Chartered has always been one of our valued correspondent banks and we are proud to be the first to sign up for this product.” The Saadiq euro nostro accounts will be available to clients globally across the bank’s network. The facility allows financial institutions to earn profits on available euro balances in their accounts and provides Shariah-compliant account reporting statements as well as a full range of commercial and treasury payment capabilities. It also provides a full suite of beneficiary deduction and principal protected products for incoming and outgoing payments and the ability to customise transaction fees on multiple levels – by customer, beneficiary, country, branch or code word, Standard Chartered Qatar said. Anurag Bajaj, Standard Chartered global head (clearing and liquidity management) said, “The launch of the Islamic euro nostro accounts is a direct result of our client-led approach. We have been able to deliver another industry first through frequent client interaction and feedback.” To ensure Shariah-compliance for its products, Standard Chartered’s is advised by an independent committee comprising three of the world’s most renowned Shariah scholars – Dr Abdul Sattar Abu Ghuddah, Sheikh Nizam Yaquby and Dr Mohamed Ali Elgari.