Deutsche Bank partners with CIMB Islamic to bolster Shariah custody capabilities in Malaysia and launches its new offering in Singapore

Deutsche Bank has today announced a partnership with CIMB Islamic Bank Berhad (“CIMB Islamic”) that will allow it to provide compliant Shariah custody to clients in Malaysia and complement its existing Shariah custody business in the region. In addition, Deutsche Bank is being appointed by CIMB Islamic to support its foreign custody services with its CustodyOne product.

The partnership involves Deutsche Bank complementing its existing Shariah custody function with CIMB Islamic’s, to offer clients in Malaysia regulatory compliant services (in line with guideline changes made by the Securities Commission in late 2022). The majority of targeted clients are fund managers governed by the Securities Commission’s guidelines for Shariah capital markets products.

Also in Southeast Asia, Deutsche Bank has just launched new Shariah compliant custody capabilities in Singapore, which will complement its CustodyOne offering, making global access simple for clients. As a global bank with a strong presence in Singapore, Deutsche Bank is focused on meeting the growing demand for Shariah custody, particularly as domestic clients are expanding their operations across ASEAN.

Deutsche Bank’s Head of Securities Services for ASEAN, Samir Dhamankar said: “We are pleased to partner with CIMB Islamic, being one of the top banking institutions in the ASEAN region as well as a cornerstone of the Malaysian banking landscape. Together, we can offer our clients market-leading Shariah custody that meets industry standards and fulfils regulatory requirements in Malaysia. We are committed to the ASEAN region and helping our clients grow in this unique and increasingly important segment.”

Ahmad Shahriman Mohd Shariff, Chief Executive Officer of CIMB Islamic added, “CIMB Islamic remains at the forefront of offering attractive propositions to cater to the growing demand for Shariah compliant products and services. We are pleased to partner with Deutsche Bank to strengthen their Shariah services and deliver on our long-term growth objectives of advancing Islamic finance, in line with Bank Negara Malaysia’s Financial Sector Blueprint.”

CIMB Group’s Co-Chief Executive Officer of Group Commercial and Transaction Banking, Lawrence Loh said, “As a leading financial intermediary, we continuously foster strategic partnerships that prioritise the needs of our valued customers. This partnership augurs that drive, and we are pleased to collaborate with Deutsche Bank, not only to support their clients in Malaysia, but to expand our foreign custody services in over 100 markets.”

Shariah funds globally held $105 billion in assets under management as of the end of Q2 2023 and Malaysia held the largest share of this total with 27%1. Southeast Asia accounts for 80% of Asia Pacific’s total Shariah banking assets and market growth is forecasted at 8% over the next two years. Malaysia and Indonesia are the most dominant markets for Shariah banking in Asia Pacific2.