Products and Services
Deposits are the money placed in the bank for a period of time. SAIB provides different types of deposits that serve the needs of its customers.
Islamic Deposits are Murabaha Contracts that allows the Bank’s clients to make a profit on funds placed with it in a safe and Shariah-Compliant manner.
The Bank enters into a contract with the client to invest the funds in a commodity at an agreed price. The Client makes a profit by selling the commodity at a future date at a higher price.
Time Deposits are funds placed in the Bank for short, medium or long term in return for a fixed rate interest payment. The rate of interest varies based on the amount and the tenor of the deposit
Interest Rate Derivatives
Interest rate derivatives are financial instruments whose value is affected by any change in interest rates. Interest rate derivatives are used to hedge against interest rate risk.
Interest Rate Swaps
Interest Rate Swap’s (IRS) are agreements between two parties to exchange future cash flows on a notional principal amount of the same currency. The cash flows are based on a fixed rate payment for one party and a floating rate payment for the other party. IRS’s are useful in protecting balance sheets and investment portfolios from adverse fluctuations in interest rates. IRS’s can be tailored to meet individual needs and are readily available in different maturities.
Caps, Floors and Collars
Interest rate caps, floors and collars are option agreements between two counterparties to set a ceiling or a floor or both on interest rate level. These agreements are used to hedge the clients’ interest rate risk.
Swaptions are options to enter into an interest rate swap. In return for the premium payment, the buyer has the right but not the obligation to enter into an interest rate swap
The Bank offers inclusive foreign exchange services to corporate and individual clients in Spot, Forward, and Currency options (including Vanilla and Exotic structures). The bank works on assisting clients to discover most suitable solution in currency exposures from G-10 to emerging countries’ currencies.
Foreign Exchange Derivatives
Foreign exchange derivatives are financial derivatives whose payoff depends on the foreign exchange rates of two (or more) currencies. These instruments are commonly used for hedging foreign exchange risk or enhancing the yield. Specific foreign exchange derivatives are presented below:
The Bank offers to its clients currency options that enable them to hedge and maintain their budget by entering a contract that gives them the right but not the obligation to buy or sell certain currency at a certain price for a certain date.
The Bank deals and offers currency swaps to corporate and individual clients that have exposures in a foreign currency. These instruments assist in hedging risk arising from mismatching assets and liabilities and volatility in markets.
The Bank offers currency forwards contracts to its corporate and individual clients as part of hedging techniques that helps maintain future exposures from being adversely affected by volatile markets.
The Bank offers hedging and yield enhancement structured products to both corporate and individual clients. The Bank maintains an excellent risk management team to help clients understand the risks associated with such products. With almost unlimited asset classes, the Bank is able to satisfy all hedging needs and link funds to illiquid markets