Standard Chartered launched the industry's first Islamic Euro Nostro account, enabling Islamic banks across the world to earn Sharia-compliant profits on their account balances at the bank's branch in Frankfurt.

A Nostro account is one that is established in a foreign country and usually in the currency of that country for the purpose of carrying out transactions.

Islamic banks across the world will now be able to earn Sharia-compliant profits on their account balances at Standard Chartered Bank Germany Branch in Frankfurt.

Bank Alfalah Limited, one of the leading banks in Pakistan, is the first to sign an agreement with Standard Chartered Bank for the Islamic Euro Nostro account at the recently concluded Bankers' Conference 2012, held in Istanbul, Turkey.

"Following the success of our Saadiq US Dollar Nostro account last year, we have identified a need to extend this innovation to our euro clients," said Standard Chartered Saadiq chief executive for global Islamic banking Afaq Khan.

"We would like to congratulate Bank Alfalah for being the first financial institution to benefit from this unique Sharia-compliant structure."

Bank Alfalah group head of treasury Ali Sultan congratulated Standard Chartered Bank for leading the way in Islamic banking and introducing this innovative product.

"Standard Chartered Bank has always been one of our valued correspondent banks and we are proud to be the first to sign up for this product," Sultan said.

The Saadiq EUR Nostro accounts will be available to clients globally, across the Standard Chartered network. – TradeArabia News Service