Underlying Contract- Mudarabah. Mudarabah-based investment product that allows investors to enjoy MYR return based on profit-sharing on CIMB Islamic's rate of return - customers will be enjoying and riding good growth performance of CIMB Islamic. The fixing of the rate of return is done on monthly basis. Hassle free investment: no opening of account needed, premature withdrawal with no penalty, tenor range from a day to a year.
Commodity Murabaha Deposit
Underlying Contract- Mudarabah
Murabahah-based investment product that allows investors lock in a fixed MYR rate of return. A choice of certainty return same as conventional deposit. Commodity transaction to facilitate the deposit transaction will be done by CIMB Islamic. Hassle free investment: no opening of account needed, premature withdrawal with no penalty, tenor range from a day to a year.
Islamic Negotiable Instruments
Underlying Contract- Qard
Negotiable Islamic Debt Certificate ("NIDC")
Bai' Bithaman Ajil ("BBA") based investment product in which investors would obtain a certificate evidencing that a certain amount of money has been deposited with the issuing bank at an agreed MYR profit rate and payable at a specified future date. The certificates can be easily liquidated to raise cash before maturity date.
Islamic Negotiable Instruments of Deposit (INID)
Mudarabah-based investment product in which investors would obtain a certificate evidencing that a certain amount of money has been deposited with the issuing bank at an agreed MYR profit sharing ratio and payable at a specified future date. The certificates can be easily liquidated to raise cash before maturity date. Upon maturity date, actual dividend shall be declared based upon issuing Bank's rate of return.
Bank Negara Monetary Notes
Underlying Contract- Wadiah
Islamic securities issued by Bank Negara Malaysia for purposes of managing liquidity in the Islamic financial market -- new issuances may be issued either on a discounted or a coupon-bearing basis depending on investors' demand.
Islamic Accepted Bills
Underlying Contract- Mudarabah
An instrument that is drawn to finance trade: imports, exports & domestic. It is formulated based on the Shariah concepts of Murabahah (cost-plus) & Bai al-Dayn (debt trading) at creation, and based on Bai al-Dayn when traded on secondary market thereafter. Investors can invest in these instruments to earn higher MYR yield for surplus funds (subject to availability).
Foreign Currency Al-Wadiah
Underlying Contract- Wadiah
Wadiah-based deposit product that allows investors to place foreign currencies with CIMB Islamic Bank for safe-keeping, and the Bank shall distribute profit, if any, as hibah upon maturity.
Contract of Qard, Wadiah and Mudarabah
Qard:
In Islamic finance, qard (Qard-e-Hasan) is treated as a loan free of any profit. The amount deposited has no return on it. Qard is deposited in bank and must be returned to the depositor upon request. The banks are allowed to charge service fee on administrative expenses of handling the qard but that fee must not be related to any maturity and amount of loan deposited. The banks use these funds for further investment on their own risk.
Wadiah
Wadiah is also called "Amanah". The banks treat the amount deposited as amanah/trust and the deposits are held at the bank for safekeeping. These deposits can be used by the banks on their own risk. The profit/loss on further investment of the deposits both belong to the bank and the depositor cannot claim for any profit on it. The capital value of the deposits is guaranteed to the depositor.
Mudarabah
In mudarabah, two parties are involved. One who invests the capital (rabb-ul-mal) and the second is the entrepreneur who invests managerial skills (mudarib). Profits are shared between them on a certain fixed ratio while loss is borne by the rabb-ul-mal. In this way, the banks either earn profit if the project is successful or other loss the entire amount invested by it. The risk related to mudarabah mode of financing is that if the project doesn't succeed, the bank will loss the invested amount.
IJARAH IN CIMB ISLAMIC
Leasing-i is a facility based on the Shariah contract of Ijarah, which allows you to lease equipment/commercial vehicles from Bank Islam on rental for the usage of equipment during the lease period. The total leased rental, which is fixed throughout the tenure, comprises the original cost of equipment and the Bank's profit margin.
Some Businesses of Ijarah are:
IJARAH PROPERTY FINANCING (For Business)
Ijarah Property Financing-i is based on the concept of Ijarah Muntahiyah Bittamik which offers the transfer of property ownership at the end of tenure by paying a nominal amount to the bank.
Ijarah Rental Rate package: The Ijarah rental payment may fluctuate based on the movement of BFR.
Applicable to completed property only - Home or Business Premises..
Ijarah Rental Rate Protection : The rental rate for this package is capped at the CPR of 10.75% p.a
THREE STEPS FOR PROPERTY OWNERSHIP
Apply for Ijarah Property Financing-i
Bank purchase the property and becomes the owner of the property.
Customer leases the property from the bank at an agreed price.
Customer purchases the property at the end of tenure or any time by paying the Exercise Price to the bank.
FEATURES AND BENEFITS
Financing all types of completed residential properties.
Minimum financing amount is RM15,000
Margin of financing (MOF) is up to 90%
GMTP can be financed
Applicant can enjoy flexible financing up to 40 years or up to the age of 70 years, whichever is earlier.
Malaysia CIMB Islamic issues globally sukuk Al-Ijarah which was amounted USD 1.5 b this year.
MURABAHAH FINANCING
CIMB Islamic does business in Commodity Murabaha which is the Islamic Profit Rate Swap. CIMB Islamic has signed agreements with United Kingdom and Gulf Cooperation Council (GCC) based institutions for several cross-borders Commodity Murabaha. In commodity murabahah customers agree for fixed MYR (Malaysian Ringgit) rate of return. The bank itself does the commodity transaction. For murabahah financing, the customer do not have to open an account in the bank and its tenure ranges from 1 day to an year.
CIMB Islamic has RM230 million variable rate Sukuk Commodity Murabahah assets.
In CIMB Islamic Financial Statements (Year ended December 2011), Financing, advances and other financing/loans:
Deposits by Contract (RM '000)
Murabahah (cost-plus)
1,470,041 (2011)
Total
29,826,875
Deposits from customers (RM '000)
Commodity Murabahah
44,600 (2011)
Total
17,705,704
The current discount rate announced by the Central Bank of Malaysia is 3%.
