To hedge profit rate risk of your liabilities.
Noor Bank is an active player in the Profit Rate Swap market and has the capability to offer this product in various currencies for medium to long term (within approved guidelines). A Profit Rate Swap is a product through which the institutions can efficiently manage their profit rate exposures. This product is beneficial to both the borrowing and investing institutions as they can hedge their market rate exposures. A Profit Rate Swap is an agreement to exchange profit rate payments between a party paying Fixed Profit Rate and a party paying Floating Profit Rate or vice versa implemented through the execution of a series of underlying contracts to trade certain assets under the Sharia principles of Murabaha financing and Murabaha investment.