Some of the key products and services of the proposed bank are as follows :

LIABILITY GENERATION

•  Jaiz Current Accounts

This is similar to a current account as in conventional banking in that it pays no interest to depositors. It is essentially a safe keeping (Al-wadiah ) arrangement between the depositor and the Bank, which allows depositors to withdraw their funds at any time. As in the case of a conventional Bank, cheque books are issued to depositors and the Bank also provides a broad range of payment facilities and clearing mechanisms such as bank drafts, bills of exchange and travelers cheques. For its services, the Bank will NOT charge Commission on Turnover, although a nominal administrative charge is payable. The Bank will require the permission of the account holder to make use of the funds.

Jaiz Savings Deposit Accounts

•  Jaiz Regular Savings Account (under Al-Wadiah)

•  Jaiz Hajj Savings Account

•  Jaiz Savings Account (under Mudaraba)

•  The Savings Deposit Accounts will operate similar to conventional savings accounts, with balances payable on demand. However, under the Mudaraba arrangement, the depositor may allow the Bank to invest deposits in short term initiatives and thus share in a proportion of the generated profits.

Investment Accounts Investment accounts are likened to fixed term accounts as offered by conventional banks. Here, monies are deposited with the Bank for a certain period of time. The Bank will offer two variants of Investment Accounts:

• Joint Investment Accounts

Depositors will enter into Mudaraba contracts with the Bank, whereby depositors are jointly considered as Mudarib (lenders). The depositors will authorise the Bank to select suitable investments and projects. Profits are shared according to agreed profit sharing ratios between the Bank and the investing depositorS. Losses (if any) shall be borne by the investing depositors and the bank, each in proportion to the contribution made unless the Bank is demonstrably negligent or in violation of agreed terms.

Specified Investment Accounts

The Bank will receive monies from depositors desiring to appoint the Bank as an agent to investing their deposits in specific projects or in a specified manner on the basis that the Bank will receive a part of the net profits realised, but will not be liable for any loss which is not attributable to any violation or fault by the Bank.

ASSET CREATION

•  Micro Credit Finance

A special division will be set up to cater specially for lending to small-scale entrepreneurs in order to develop cottage industries. These prospects will be organized into groups and collective loans extended to them with mutually reinforcing guarantees from the members as well as the provision of other acceptable collateral such as landed properties.

Cost-plus financing (Murabaha )

Murabaha is the most popular and most common mode of Islamic financing. It is the Islamic equivalent of cost-plus financing. Under this arrangement the Bank will purchase (at the request of a customer) goods (consumer products etc) and sells to the customer a price plus mark-up. The Bank is obliged to tell the customer the cost and the profit it is making.

Leasing (Ijara )

Under this arrangement, the Bank purchases an asset (as per specification provided by the customer) and leases it to the customer on a 'lease and return' basis. During the period of the lease, ownership of the asset remains with the lessor (Bank) but the right to use the asset is transferred to the lessee (customer). Upon the expiry of the lease agreement, ownership right reverts to the Bank, but the customer may elect to purchase the asset and pays a pre-agreed price for it.

Trust Financing Arrangement (Mudarabah )

Under this agreement, the Bank finances some transactions administered by its customer on the basis that the Bank will partake in the Profit (or loss) that would arise from completion of the transaction. The Bank bears all risks arising from the transaction, if it provides all the finance for the transaction.

Equity participation (Musharaka )

Musharaka roughly translated means partnerships and in this mode of financing, two or more financiers provide funds for the execution of a project. All partners are entitled to a share in the profits resulting from the project in a ratio that is mutually acceptable. However losses, if any, are shared exactly in the proportion of capital contributed. The Bank in this project may be a co-owner, a partner or just a provider of capital.

Istisnah Istisnah is defined as a contract for the acquisition of manufactured goods, by specification or order, where the price is paid gradually in accordance with the progress of the job. This technique can be used for real estate development, where builders are paid at different stages of the building process. This form of financing can also be utilised for the expansion of production facilities.

Other Banking Services

•  Financial advisory services

•  Letters of credit(import/export)

•  Bills for collection services

•  Foreign exchange transactions

•  Funds transfer services

•  Letters of guarantee

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