Bandar Seri Begawan - The Corporate Banking Division of Bank Islam Brunei Darussalam (BIBD) yesterday held a customer appreciation day as well as a soft launching for its new product 'Musyarakah' at the Banquet Hall of the Royal Brunei Polo and Riding Club.

The aim of the event was to show appreciation to the Corporate Banking Division's customers as well as an opportunity for its staff to strengthen their relationship with customers.

The guest of honour was the Chairman of BIBD, Pehin Orang Kaya Hamzah Pahlawan Dato Seri Setia Awang Haji Abdullah bin Begawan Mudim Dato Paduka Haji Bakar, also the Minister of Development.

Also in attendance were members of the Board of Directors of BIBD, BIBD's Acting Managing Director, Javed Ahmad and Head of Corporate Banking Division who is also the Chairman of the Organising Committee for the event.

In his welcoming remarks, Mr Javed Ahmad remarked that the success of business can only be achieved through a focussed approach to meet customers' needs in the highly competitive global business environment.

Meanwhile, 'Musyarakah' is a financing solution designed to assist businesses to finance contracts awarded by the Government of Brunei Darussalam and or Brunei Shell Petroleum Sdn Bhd.

The product, based on the concept of 'Musyarakah', which basically means partnership, which in principle refers to the commingling of the capital provided by the partners for the purpose of sharing in profit from the pre-aged business ventures. Any profit derived from the venture will be distributed based on a pre-agreed profit sharing ratio, but a loss will be shared on the basis of equity participation.

The 'Musyarakah' concept is where the customers and the bank will participate in the project as equity partners. The customer and the bank will provide capital to finance the project and profit, if any, will be distributed between both parties according to a pre-determine profit sharing ratio.

On the other hand, losses will also be borne by both parties but based on equity participation.

Although the bank agrees to share losses, the bank shall be immune from any loss, which is caused by the negligence or misconduct of the client and with this, the client will be entrusted to manage the business venture in the best possible manner to ensure its profitability.

BIBD's Corporate Banking Division is located at the second floor of the bank's headquarters in the capital and in Kuilap.

For more information, members of the public may contact 2269555 during office hours.-- Courtesy of Borneo Bulletin

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