ALLIANCE BANK LAUNCHES i-WISH HOME FINANCING-i

Kuala Lumpur, 31 January 2005 – Alliance Bank today launched i-Wish Home Financing-i, based on the principle of shariah which emphasizes the principles of fairness, transparency and most importantly eliminating the element of interest or ‘riba’ in all the transactions.

A new hybrid of Islamic financing, the Alliance i-Wish Home Financing-i protects consumers from Base Lending Rate (BLR) fluctuation with a capped floating rate feature. In the past, conventional interest rates fluctuate depending on the BLR while the old Islamic Banking home financing packages offer only fixed rate.

Ong Ah Tin, Alliance Bank’s Senior General Manager of Mortgage, Hire Purchase and Wealth Management says, “Going forward, Alliance Bank will continue to offer capped floating rate as a standard feature in all its mortgages so that the home buyer is protected from rate fluctuation.”

Ong continues, “At 1.28% p.a. 1st year for properties under construction, our new i-Wish Home Financing is one of the most competitive in town, even for completed properties as well as for those who wish to refinance their existing home. Qualified customers will be offered a margin of financing of up to 95%, with a maximum tenure of 35 years for individual purchases. Besides, the home buyer will benefit from return on MRTA where part of the premium will be reimbursed upon expiry of the MRTA certificate.”

Alliance Bank adopts a holistic view to property financing, from offering bridging loans to developers to end financing to the home purchasers. “We complete the marketing cycle with product bundling to our customers. For example, our eligible home loan customers will enjoy fee waiver for Alliance Bank credit cards for the entire tenure of their loan. In addition, they will also enjoy free processing fees and House Owner insurance for the 1st year. Home loan customers with an approved limit above RM500,000 will be invited to take up our Alliance Privilege Banking membership,” says Ong.

Yahya Ibrahim, Senior General Manager of Islamic Banking adds, “The Bank plans to launch more Islamic Banking products and services this year. Todate the bank has almost all products for consumer, trade finance and business financing under shariah principles i.e al-wadiah (savings and current account), mudharabah (savings and general investment account), murabah (letter of credit & working capital financing), kafalah (letter of guarantee), bai dayn (accepted bill & export credit refinancing scheme) and financing products such as al-bai bithaman ajil (deferred payment sale), ijarah (leasing) and ijarah thuma al-bai (hire purchase)”.

In support of BNM’s call for more emphasis to Islamic Banking products and services, going forward Alliance Bank will offer both conventional and Islamic Banking products. With a wide range of banking products, the consumers will have options of either conventional or Islamic products. Yahya continues, “As stipulated in the Financial Sector Master Plan, Islamic Banking’s market share is expected to increase to 20% by 2010. Based on this, we also expect the bank to ride on the growing Islamic market for its products.”

The i-Wish Home Financing-i is available at all Alliance Bank branches nationwide. For more information on the Alliance i-Wish Home Financing-i, please log on to www.alliancebank.com.my