Al Salam Bank, Bahrain’s largest and fastest growing domestic bank, has implemented Overnight Murabaha from J.P. Morgan Payments. The bank becomes the first globally to adopt the service within its asset and liability management framework. The implementation strengthens Al Salam Bank’s approach to treasury and liquidity management. It also supports the bank’s continued focus on financial services innovation. Moreover, the solution enables the bank to pursue greater efficiency across its liquidity operations.
The milestone was celebrated at the Bahrain Formula 1 Grand Prix in Malaysia. The occasion was attended by senior representatives of Al Salam Bank and J.P. Morgan Payments. The event also demonstrated the long-standing relationship between the two organizations. Also, their collaboration marks a collective effort to advance global financial solutions. The demand for Shari’a-accepted financial services continues to grow and the Overnight Murabaha offering is part of that. This demand continues to be especially strong through Asian markets. Meanwhile the Islamic finance ecosystem continues to expand in the region.
Commenting on the occasion, Rafik Nayed, Group Chief Executive Officer of Al Salam Bank, said: “This collaboration marks a key milestone in the evolution of liquidity management across the financial services sector, with Al Salam Bank becoming the first bank globally to implement J.P. Morgan Payments’ Overnight Murabaha solution. Our relationship with J.P. Morgan Payments reflects a clear strategic priority of translating global connectivity into practical capabilities. This pioneering implementation underscores our commitment to advancing banking solutions through innovation that addresses evolving business needs.”
Hooi Ching Wong, Senior Country Officer, J.P. Morgan Malaysia and ASEAN Head of Corporate Sales, J.P. Morgan said, “Our longstanding relationship with Al Salam Bank is built on trust and a shared commitment to developing solutions for a changing treasury landscape. This collaboration demonstrates the value of combining our global payments capabilities with a deep understanding of our clients’ requirements.”
Overnight Murabaha Supports Treasury Operations
J.P. Morgan Payments launched the Overnight Murabaha solution in 2026. The solution enables banks to earn overnight returns based on Murabaha on funds parked in nostro accounts. These are J.P. Morgan Payments accounts. This helps banks to manage their short term funds in a better way. It is designed to optimize liquidity and make treasury operations more resilient. It gives financial institutions another place to invest short term balances.
Furthermore, the implementation is an important development in relations between both organizations. J.P. Morgan Payments and Al Salam Bank continue to focus on innovation and financial services excellence. The partnership also reflects their joint focus on designing practical banking solutions. These solutions address evolving requirements across modern treasury environments.
Developing Islamic Finance Capabilities
The launch of the Overnight Murabaha solution is part of Al Salam Bank’s treasury strategy. It also supports the financial institutions capabilities of the bank with global best practices. The bank also continues to explore differentiated offerings through strategic tie-ups. These efforts are part of its broader strategy for financial services innovation. The bank is also committed to supporting the development of the Islamic finance industry. “Al Salam Bank is keen to implement these initiatives that will provide real value to stakeholders.
The adoption of Overnight Murabaha also exemplifies how financial institutions are increasingly looking to use technology and innovation to enhance liquidity management practices. In addition, financial institutions are looking to diversify their treasury management offerings, and thus, are in need of more Shari’a-compliant products. At the same time, Islamic banking is also gaining ground in international markets, thereby creating additional demand for Shari’a-compliant products.
The introduction of the Al Salam Bank is yet another sophisticated implementation in the process of development in the financial sector. The cooperation with J.P. Morgan Payments stresses the importance of cooperation on a global scale. Both companies are cooperating and developing their abilities in the changing environment of treasury requirements.
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News Source: Businesswire.com
