corporate bankİng products Ömer karakuŞ / group manager mehmed tahir kaplan / manager

CORPORATE BANKİNG PRODUCTS

Ömer KARAKUŞ / Group ManagerMehmed Tahir KAPLAN / Manager

I S T A N B U L , O C T O B E R 2 0 1 1

Non-cash LoansCash Loans

→Murabaha

→ Leasing

→ Profit-lost sharing (musharaka)

→ Letter of guarentees

→ Letter of credits

→Acceptences and othe guarentees

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Other Banking Services

• Foreign Trade Services • Cash menagment (deposits, cheques,…)• FX and Treasury products.

K U R U M S A L V E T İ C A R İ B A N K A C I L I K G R U B U

Corporate Financial Support – MURABAHA

Leasing – IJARA

Profit-Lost Partnership – MUSHARAKA-MUDARABE

Loans without profits. – KARD AL HASEN

BASİC FUND UTILIZATION TECHNIQUES

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Murabaha

Cost-plus financing 3 parts: Bank, seller, customer Banks buys a good and sells to customer by adding

profit Repayments to bank made over time. Title of good transferred to customer during

transaction. %90 share in total cash risk.

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good

Murabaha

Customer

Kuveyt Türk

1 – buying dealling (Pro-forma invoice

2 – Aplication to bank

4 – Transfer of good to customer-invoicing

6 – repayment by customer over

time

Seller

5 – Bank s

ends money t

o selle

r

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3 – Bank o

rder t

o selle

r

• IN A MURABAHA • a tangible asset must exist• asset must be islamically compatible• the cost of good must be known by customer• at the beginning of the transaction, the price, the

profit rate and the term of repayment must be agreed between bank and customer.

• After sales, the profit rate can not be changed.• Bank may grant special autharization to customer

(wakale) for the purchase of goods.

(Leasing) – Ijara

Leasing of a good subject to amortization to customer

3 parts ( Lessor, seller, bank) Title of good belong to the bank during the rental

period.

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Machinery

Kuveyt Turk

1 – Selling deal(Pro-form invoice

2 – Leasing Agreement

4 – Transfer of machinery

6– Repayment

Seller

3 – Se

ller i

nvoic

e ban

k

5 – Ba

nk bu

ys m

achin

eryCustomer

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7 – Transfer of title

(Leasing) – Ijara

• IN A LEASİNG• An investment good subject to amortization• Rent period is min. 4 years ( except some goods) by

law.• At the end of rent period, title of good transfered to

customer .• Tax advanteges.• Rental period and rent amount can be changed.

Musharaka

Business partnership between two or more parts Parts may contribute both cash and labor, know-how Profit to be shared on agreed terms and loss to be

shared according to shares Duration of partnership to be determined by the

contract. Hard to implement in practice.

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Mudaraba

One part invest cash(investor, rabb-ül mal), other part labor, know-how( mudarib)

The mudarib is responsible for doing business and keeping records.

Profit to be shared among parts as agreed in the contract.

Losts are to be born by rabb-ül mal ın Turkey, used as method for collecting funds.

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Kard Al Hasen (Good Loan)

For profitable custemers, short term No charge of profit or fee Used for tax payments, cheque payment, salary

payment. Etc.

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THANK YOU…

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