Frequently Asked Questions

 What is Islamic Banking?

 What can Trustbank Amanah mean for Suriname?

 How does Trustbank Amanah differentiate itself from conventional banks?

 What is the difference between interest and profit?

 Which services or banking products does Trustbank Amanah offer?

 How do bank products work at Trustbank Amanah?

 Why should a customer consider Islamic banking?

 Is banking at Trustbank Amanah according to a certain religion?

 Who are the target groups of Trustbank Amanah?

 What are the foundations of Islamic banking?

 Are there any restrictions in investments according to Islamic Banking?

 What are the different financing options that the bank offers?

 How does Islamic bank make money?

 What is profit margin (mark-up)?

 What does Profit and Loss Sharing mean?

 How does saving and investing work at Trustbank Amanah?

 If permission is not granted to use the savings for investment, what happens to the savings?

 If no profits are made, what happens to the investment used for investment?

 What is Shari'ah?

 Which are the principles of Shari'ah that apply to Islamic banking?

 How does Trustbank Amanah ensure that the services will be in accordance with Shari'ah principles?

 What is meant by ethical banking?

What is Islamic Banking?

"Islamic Banking" is based on the Shari'ah, the legal framework of Islam based on norms and values. The framework provides the ethical guidelines that the individual must follow in all aspects of life, with the emphasis on living in harmony with each other and with nature and the prevention of infringement of the rights of others cq.will injustice to themselves and / or others.

What can Trustbank Amanah mean for Suriname?

Trustbank Amanah offers a different way of banking , Islamic banking, that can serve as an incentive, support and development for the economic growth of micro, small and medium-sized entrepreneurs. Furthermore, Islamic Banking can also mean promoting social development, combating poverty and ultimately promoting the financial well-being of the Surinamese community. With this method of banking, Trustbank Amanah is the first Islamic Bank in the Western Hemisphere, which could mean a new sales market for Suriname.

How does Trustbank Amanah differentiate itself from conventional banks?

Trustbank Amanah uses banking according to the Shari'ah principle, where interest is prohibited.
Trustbank Amanah is based on profit and compensation.
At Trustbank Amanah the risks are shared by the bank and customer.

What is the difference between interest and profit?

Interest is a merit that one gets without making the risks and the effort for it. Profit (in trade) is obtained only by working for it.

Which services or banking products does Trustbank Amanah offer?

In the initial phase of Trustbank Amanah, savings, investment and credit are offered. In the second phase, the expansion will take place to complete the service, whereby all banking products and services such as current account, internet banking, credit cards etc. will be offered.

How do bank products work at Trustbank Amanah?

The banking products operate on the basis of profit and risk-sharing, trade transactions, capital investments and leasing activities.

Why should a customer consider Islamic banking?

It promotes financial justice: This involves sharing profit and loss in a proportionate way between the bank and the customer.

Is banking at Trustbank Amanah according to a certain religion?

Trustbank Amanah is accessible to anyone who needs banking regardless of religious conviction.

Who are the target groups of Trustbank Amanah?

Anyone who needs banking, but the focus is on micro, small and medium enterprises.

What are the foundations of Islamic banking?

Collateral of real goods and services: transactions are supported by real goods and services, direct contribution to the growth of the real economy
Ethical (equality and fairness between bank and customer)
Participative (profit and risk sharing)
Good governance (promotes the well-being of people and society, transparency and openness)

Are there any restrictions in investments according to Islamic Banking?

Interest is forbidden.
Projects and whether companies related to drugs, porn, alcohol, weapon trade, gambling and trade in animal species such as pigs are not eligible for funding.

What are the different financing options that the bank offers?

Islamic banking offers financing options based on purchase or lease. In the case of a purchase agreement, the buyer (customer) becomes the owner of the product after accepting the purchase agreement. When renting or leasing the landlord (bank) remains the owner of the property, only the right to use is transferred to the client. In both cases, the agreed repayment is made to the bank according to a fixed period. The risks are intended by the person in whose hands the property right (customer or bank) is situated, as agreed in the underlying agreement. In the case of lease, after the lease period has expired, the product can be transferred as a gift to the client who then becomes the new owner.

How does Islamic bank make money?

Through equity participations (or partnerships)
By earning a profit margin (mark up) on trading and leasing activities.

What is profit margin (mark-up)?

a compensation for the market risk on the goods (for example a change in the price of the building) that the bank runs.
a compensation for the credit risk (the risk that the customer does not fulfill the obligations)
administration costs and / or insurance costs.

What does Profit and Loss Sharing mean?

Refers to an agreement between the bank, entrepreneur and / or the investor. This arrangement enables the investor to participate in business projects and the profit is distributed on the basis of a predetermined profit sharing by ratio. The possible risks are also jointly shared by both the bank and the investor.

How does saving and investing work at Trustbank Amanah?

Trustbank Amanah offers the possibility to save or invest according to Shari'ah principles. This system means that an amount or principal is deposited by the client in a savings or term deposit account on which the bank has permission to cooperate. The bank then manages the client's funds and invests in certain sectors. The profits generated from this will then be paid to the client and the bank (management costs) according to a pre-agreed distribution; either quarterly for the savings account or after the agreed term of the deposit.

If permission is not granted to use the savings for investment, what happens to the savings?

As a saver you can save in two ways: As an investor, where the savings will be used to invest in a specific sector. The profits are paid on the basis of a previously agreed division. As a saver, where your money is deposited with the bank.

If no profits are made, what happens to the investment used for investment?

As an investor you share both in the profits and in the losses.

What is Shari'ah?

Shari'ah is the legal framework of Islam based on values and norms. The framework provides guidelines that people must follow in all aspects of life so that they will live in harmony with each other and with nature and will not infringe on the rights of others or injustice themselves and others.

Which are the principles of Shari'ah that apply to Islamic banking?

Prohibition of interest on all financial transactions, such as: interest in debts and interest in sale.
Obligations of trust and connections.
Prohibition on unlawful income and expenses and giving less than due in measure and unjust enrichment.

How does Trustbank Amanah ensure that the services will be in accordance with Shari'ah principles?

In order to ensure that the activities will be carried out according to Shari'ah principles, a Shari'ah Supervisory Board has been incorporated in the organization, consisting of Shari'ah experts and lawyers to co-assess the applications.