Bank of Ceylon is having the concept of Islamic banking which offers customers an ethical and Shariah-compliant banking experience while contributing to the overall development of Islamic finance in the country.
How does the Islamic Banking Unit operate within the Bank of Ceylon?
It operates under the brand name of BOC AN-Noor (meaning "Light")which offers a range of Sharia-compliant deposit and financial services that cater to corporate entities, institutions, and individuals alike. These services are designed to ensure ethical compliance through a profit-sharing mechanism, providing peace of mind to all customers. BOC AN-Noor products are accessible to all Sri Lankans. The investments made through BOC AN-Noor are strictly regulated to ensure compliance with Sharia and are certified by In House Shariah Advisor and the Shariah Supervisory Board.
Does BOC AN-Noor Islamic Banking offer current accounts, savings accounts, children's savings accounts, and foreign savings accounts like other banks?
Yes, BOC AN-Noor provides the following products:
- An-Noor Current Account: Based on the concept of Qard, where the bank accepts deposits to be paid on demand, in compliance with Shariah principles.
- An-Noor Ordinary Savings (Mudaraba Savings)
- An-Noor Children’s Savings (Athfal Savings)
- An-Noor Foreign Currency Savings Account: Available as both Ordinary and Athfal accounts.
These deposit accounts operate under the Mudaraba business model, where profits are shared between the bank and the depositors.
Who is eligible for this service?
BOC AN-Noor products are available to all Sri Lankans, regardless of faith. While these services adhere to Islamic banking principles, they are open to anyone who wishes to obtain these facilities. Additionally, customers can access services such as SMS banking, Internet Banking, and Debit/ATM cards, just like with other BOC accounts and services are available at all branches in the islandwide.
What are the Islamic investment concepts available?
Islamic banking offers several Sharia-compliant investment methods designed to generate profit while adhering to Islamic principles such as Murabaha ,Wakala and Ijara.
Could you explain what plans you have for the development of Islamic banking unit?
To further enhance the reach and effectiveness of Islamic banking at BOC, several strategic initiatives are being undertaken:
- Introduction of New Products:
Product Expansion: We aim to expand our portfolio of Islamic banking products to better serve the diverse needs of our customers. This includes the introduction of new deposit products like An Noor Fixed Deposits (FD) and financing solutions such as Diminishing Musharaka, which is a Sharia-compliant partnership-based financing model. - Customer Experience Enhancement:
Marketing Campaigns: To raise awareness and attract new customers, we will launch targeted marketing campaigns, leveraging various media channels to highlight the benefits of Islamic banking.
Enhanced Services: Continuous improvements will be made to our service offerings, focusing on delivering a seamless and customer-centric experience across all touch points. - Global Expansion Opportunities:
International Presence: We are exploring opportunities to expand our Islamic banking services beyond Sri Lanka. Initial discussions have been held to potentially launch Islamic banking unit in international markets, starting with the Maldives. This expansion aligns with our vision to make Islamic banking accessible to a broader audience, leveraging our expertise and reputation in the field.
