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DBS to bring Sharia-compliant banking in house

DBS to bring Sharia-compliant banking in house

(15 September 2015 - Singapore) DBS Group this week announced that it will wind down its Islamic banking joint venture and handle Shariah-compliant products in house.

"After much consideration, the board of directors of The Islamic Bank of Asia Ltd (IB Asia) has unanimously agreed to progressively wind down IB Asia. As a separate legal entity, IB Asia is unable to achieve economies of scale," DBS said in a filing to the stock exchange.

"DBS will continue to develop and distribute Shariah-compliant products such as Islamic bonds, or Sukuk, within the bank's main operations," it added.

DBS also said it will do its best to absorb the majority of IB Asia staff. 

IB Asia was established in 2007 as a joint venture partnership between DBS and investors based in the Gulf Cooperation Council.

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