Money Market

Bank Islam offers a wide choice of deposit and investment products that are in compliance with Shariah rule and principles.

Click here for comparison of key features of the deposit and investment products.

For further details, kindly contact our Treasury Sales Team at 03-2090 1710 / 1711 or Treasury Asset Liability Management Desk at 03-2090 1610 / 1611.

Note: Information contained herein is accurate as of the time of publishing and subject to change in accordance with applicable rules, regulations or guidelines issued by Bank Negara Malaysia from time to time. All products offered by Bank Islam are subject to the Islamic Financial Services Act 2013 and any applicable laws derived therefrom.


Comparison of key features

Shariah contract

Returns

Minimum amount

Tenure

Wafiyah Investment Account ( Wafiyah) Ringgit Malaysia Wakalah Expected profit rate is quoted at inception RM500,000 One day to a maximum of 10 years
Waheed Investment Account (Wakalah) (WIA Wakalah) Ringgit Malaysia and Major Foreign Currencies Wakalah Expected profit rate is quoted at inception RM500,000* One day to a maximum of 10 years
Special Investment Account (Mudarabah)(SIA Mudarabah) Ringgit Malaysia and Major Foreign Currencies Mudarabah Negotiable profit sharing ratio RM500,000* One day to a maximum of 10 years
Negotiable Islamic Debt Certificate (NIDC) Ringgit Malaysia and Major Foreign Currencies Bai Inah Profit / yield is determined upfront RM 60,001* One day to a maximum of 10 years
Floating Rate Negotiable Islamic Debt Certificate (FRNIDC) Ringgit Malaysia and Major Foreign Currencies Bai Inah Profit / yield is determined at every resetting date RM 60,001* One year (with minimum 4 profit periods) to a maximum of 10 years
Term Deposit-i( Tawarruq) (TDT-i Special) Ringgit Malaysia and Major Foreign Currencies Tawarruq Fixed rate of return RM500,000* Negotiable
Interbank Mudarabah Ringgit Malaysia and Major Foreign Currencies Mudarabah Negotiable profit sharing ratio Negotiable* One day to a maximum of 10 years
Interbank Wakalah Ringgit Malaysia and Major Foreign Currencies Wakalah Expected profit rate is quoted at inception Negotiable* One day to a maximum of 10 years

* Or its equivalent amount if denominated in foreign currency


For more details, kindly refer to the Terms & Conditions.

For more details, kindly refer to the Product Disclosure Sheet (PDS).


Important Notice: The contents of the above table, namely the details of Returns, Minimum amount and Tenure are subject to change at the sole discretion of the Bank and customers should obtain confirmation from the Treasury Sales Team prior to making any decisions based on the above.

By making a request for any of the above products, the customer understands the features of the applicable Islamic contract and acknowledges that the Bank has legal recourse against the customer to enforce its rights.

*By making a request for the SIA Mudarabah, the customer understands the loss bearing or loss transfer feature of the Mudarabah contract and acknowledge that the Bank has legal recourse against the customer to enforce its rights.

For further details, kindly contact our Treasury Sales Team at 03-2090 1710 / 1711 or Treasury Asset Liability Management Desk at 03-2090 1610 / 1611.


Note: Information contained herein is accurate as of the time of publishing and subject to change in accordance with applicable rules, regulations or guidelines issued by Bank Negara Malaysia from time to time. All products offered by Bank Islam are subject to the Islamic Financial Services Act 2013 and any applicable laws derived therefrom.


Interbank Mudarabah

Definition

Interbank Mudarabah:

Interbank Mudarabah is a wholesale money market transaction designed as liquidity management instruments in the Islamic Money Market. Based on a profit sharing concept, its features are all but not limited to the following:

  • Return is only determined on maturity date
  • Fixed maturity period
  • Known risk profile
  • Principal is not guaranteed

Investment Account:

An account under which money is paid and accepted for the purposes of investment, including for the provision of finance, in accordance with Shariah on terms that there is no express or implied obligation to repay the money in full and

  1. either only the profits, or both the profits of losses, thereon shall be shared between the person paying the money and the person accepting the money; or
  2. with or without any return.

Unrestricted Investment Account:

A type of investment account where the investor authorize the Bank to invest their funds in Shariah compliant assets without specifying any restrictions or conditions on the management of the funds.

Applicable Shariah concept

Mudarabah (Profit sharing):

A form of partnership between one who contributes capital (rabb al-mal/capital provider) and the other who contributes efforts in the form of managerial skills (mudarib/manager). Profit from the outcome of the partnership is shared between the capital provider and manager according to mutually agreed profit sharing ratio whilst losses are borne solely by the capital provider, provided such loss is not due to the manager’s negligence or violation of specified conditions.

Features

Interbank Mudarabah is a joint venture between two interbank counterparties where the surplus bank invests or place funds with the deficit bank. Both parties will then negotiate and agree on the amount, tenor of investment and profit sharing ratio. Any loss must be borne by the investor. The accepting bank also will not guarantee the investor’s principal amount on the investment activities. Profit is paid on the maturity date based on the receiving bank prevailing gross rates and the sharing ratio of the investing bank.

Types of Interbank Mudarabah

There are four types of Inter-Bank Mudharabah:

  • Mudarabah Interbank /Placement (MIP)
    MIP refers to the Bank investment on the basis of Mudarabah to another participating bank.
  • Mudarabah Interbank Acceptance (MIA)
    MIA refers to the Bank accepting investment on the basis of Mudarabah from another participating bank.
  • Foreign Mudarabah Placement (FMIP)
    FMIP refers to the Bank investment in foreign currency on the basis of Mudarabah from another participating bank.
  • Foreign Mudarabah Acceptance (FMIA)
    FMIA refers to the Bank accepting foreign currency investment on the basis of Mudarabah from another participating bank.

Profit Sharing Ratio

Negotiable

Minimum Amount

Negotiable

Minimum Tenure

One day to a maximum of 10 years

Qualified Investor(Self Suitability Assessment)

  • All financial institutions that are accorded with ‘Interbank’ status by BNM and are allowed to trade via local secondary market.
  • All foreign financial institutions that are permitted.

Investment Confirmation

Your receipt of an investment confirmation on the Interbank Mudarabah (either from the Bank or from the Bank’s broker) will constitute a binding contract.Profits generated from the Interbank Mudarabah are shared in accordance with the agreed profit-sharing ratio. Losses (if any) are to be borne by the investor and the Bank does not bear any portion thereof unless the losses are due to Bank misconduct, negligence or breach of contract.Please inform the Bank immediately if there is any discrepancy contained in the investment confirmation. If the Bank does not receive your confirmation within seven (7) days of our confirmation date, the Bank shall regard the confirmed transaction as correct and in order.

Important Notice: The contents of the above table, namely the details of Profit Sharing Ratio, Minimum Amount and Minimum Tenure are subject to change at the sole discretion of the Bank and customers should obtain confirmation from the Treasury Sales Team prior to making any decisions based on the above.

By making a request for the IIA Mudarabah, the customer understands the loss bearing or loss transfer feature of the Mudarabah contract and acknowledge that the Bank has legal recourse against the investor to enforce its rights.

For further details, kindly contact our Treasury, Asset Liability Management Desk at 03-2090 1610 / 1611.


Note: Information contained herein is accurate as of the time of publishing and subject to change in accordance with applicable rules, regulations or guidelines issued by Bank Negara Malaysia from time to time. All products offered by Bank Islam are subject to the Islamic Financial Services Act 2013 and any applicable laws derived therefrom.


Interbank Wakalah

Definition

Interbank Wakalah:

Interbank Wakalah is a wholesale money market transaction designed as liquidity management instruments in the Islamic Money Market. Based on a contract of Wakalah (Agency) with the objective of making a profit, its features are all but not limited to the following:

  • The actual return is known only on the maturity date
  • Fixed maturity period
  • Known risk profile
  • Principal is not guaranteed

Investment Account:

An account under which money is paid and accepted for the purposes of investment, including for the provision of finance, in accordance with Shariah on terms that there is no express or implied obligation to repay the money in full and

  1. either only the profits, or both the profits of losses, thereon shall be shared between the person paying the money and the person accepting the money; or
  2. with or without any return.

Unrestricted Investment Account:

A type of investment account where the investor authorize the Bank to invest their funds in Shariah compliant assets without specifying any restrictions or conditions on the management of the funds.

Applicable Shariah concept

Wakalah bil istithmar

An investment agency contract in which the capital provider (muwakkil) mandates his agent (wakil) to perform particular mua’malah transaction or investment and in return the agent will receive a fee (ujr) for the service.

Features

Interbank Wakalah is where the surplus bank appoints the deficit bank as its agent to invest the funds in the deficit bank’s banking activities with the intention of making a profit. Both parties will then negotiate and agree on the amount, tenor of investment and the expected rate of return. The accepting bank will not guarantee the investor’s principal amount on the investment activities. Profit is paid on the maturity date based on the actual return of the accepting bank.

Types of Interbank Wakalah

There are four types of Interbank Wakalah:

  • Wakalah Interbank Placement (WIP)
    WIP refers to the Bank investment on the basis of Wakalah to another participating bank.
  • Wakalah Interbank Acceptance (WIA)
    WIA refers to the Bank accepting investment on the basis of. Wakalah from another participating bank.
  • Foreign Wakalah Interbank Placement (FWIP)
    FWII/FWIP refers to the Bank investment in foreign currency on the basis of Wakalah to another participating bank.
  • Foreign Wakalah Interbank Acceptance (FWIA)
    FWID/FWIA refers to the Bank accepting foreign currency investment on the basis of Wakalah from another participating bank.

Profit Rate

Rate of return for Interbank Wakalah is based on the actual return of the accepting bank (Wakil) on the maturity date. However, if Bank Islam is the Wakil for the above contract, the profit to be paid to the investing bank (Muwakkil) will be based on the following conditions:

  • If the actual return is above the Expected Return, the Bank will only pay the Expected Return to the Muwakkil. Any excess profit will be retained by the Bank as a performance incentive.
  • If the actual return is below the Expected Return, the Bank is obliged to pay the actual return to the Muwakkil.

Minimum Amount

Negotiable

Minimum Tenure

One day to a maximum of 10 years

Qualified Investor(Self Suitability Assessment)

  • All financial institutions that are accorded with ‘Interbank’ status by BNM and are allowed to trade via local secondary market.
  • All foreign financial institutions that are permitted.

Investment Confirmation

Your receipt of an investment confirmation on the Interbank Wakalah (either from the Bank or from the Bank’s broker) will constitute a binding contract.Please inform the Bank immediately if there is any discrepancy contained in the investment confirmation. If the Bank does not receive your confirmation within seven (7) days of our confirmation date, the Bank shall regard the confirmed transaction as correct and in order.

Important Notice: The contents of the above table, namely the details of Profit Rate, Minimum Amount and Minimum Tenure are subject to change at the sole discretion of the Bank and investor should obtain confirmation from the Treasury Sales Team prior to making any decisions based on the above.

By making a request for the IIA Wakalah, the customer understands the loss bearing or loss transfer feature of the Wakalah contract and acknowledge that the Bank has legal recourse against the investor to enforce its rights.

For further details, kindly contact our Treasury, Asset Liability Management Desk at 03-2090 1610 / 1611

Note: Information contained herein is accurate as of the time of publishing and subject to change in accordance with applicable rules, regulations or guidelines issued by Bank Negara Malaysia from time to time. All products offered by Bank Islam are subject to the Islamic Financial Services Act 2013 and any applicable laws derived therefrom.