RHB Islamic Bank (“RHB Islamic”) has launched the RHB Trade Solution-i, a new Islamic trade financing solution for purchases and sales based on a new product structure combining Wakalah and Istijrar Shariah concepts.
Managing Director and CEO of RHB Islamic Bank, Adissadikin Ali said the new system of Islamic trade commodity is the first of its kind in the Malaysian market allowing for a detailed trade exchange that involves both acquisitions and sales.
Adissadikin said through this new offering, goods in the trade transaction itself are recognised as the underlying asset and this removes the need to undertake Commodity Trading to complete the transaction as required by other Islamic finance instruments based on more common Shariah concepts.
“The RHB Trade Solution-i offers customers, including small and medium enterprises (SME), the advantages of lower cost and improved time efficiency in facilitating their business-to-business trade transactions both locally and globally.”
“This new system also offers business customers a simplified banking journey with less documentation upon approval and utilization of the facility,” he said.
Adissadikin added that RHB Islamic is proud to be able to offer customers this innovative product, combining the Shariah concepts of Wakalah and Istijrar in creating a versatile and competitive trade financing solution.
“RHB Trade Solution-i supports trading of goods in Ringgit Malaysia as well as in any global currency,” Adissadikin said,” Adissadikin said.
