Why does your bank have many branches in Dar es Salaam?

Dar es Salaam is a business city with high population compared to any other region in the country. High population and the vibrant business community in Dar, prompt the bank to establish several branches in order to serve its target market effeciently. However, we have opened in Mwanza and Arusha City and depending on the bank’s performance we may open in other regions.

Does Amana Bank receive or pay interest on its relationship with BOT?

Amana Bank conducts its operations and transactions with BOT in a manner that the bank doesn’t pay or receive interest. As required by law, we maintain SMR ratio with BOT and to facilitate cheque clearing settlement we maintain a current account with BOT. None of these involves interest payment or receipt.

Is Amana Bank a Tanzanian Bank?

Amana Bank is largely owned by Tanzania’s prominent businessmen. However, there are foreign individuals who owns some shares.

Does the bank has plans to open in Tanga and Zanzibar?

The bank strategic plan is to have 13 branches countrywide by end of 2017 depending on the bank’s financial performance. Currently, we have 6 branches and look forward to reach our target market in various regions as per the criteria’s established for opening branches.

Why its easy for Masjid to have accounts in conventional bank than Amana Bank?

It is not difficult, all we need is for Masjid to be registered and meet other requirements. More so account for Masjid are enjoying special benefits under Ihsaan account.

Why is Amana bank not implementing other modes of finance instead of Murabaha?

Murabaha contract has its benefits and limitations. Among the benefits of Murabaha is the fact that its easy to understand and implement due to lower risk nature of the mode. However, Amana Bank understands the limitation of it and for that matter, it uses Qardh contract and plans to use other instruments in future should the banking regulations allow.

Can we use up country collateral when applying for credit facility?

Up country collateral is accepted provided they have the sufficient value to secure the exposure.

Islamic bank objective is to help improving people’s lives. What are the plans for Amana bank to help the lower income earners?

Amana Bank priority is to provide alternative financing mechanism which meets Shari’ah rules and principles for all. By doing this, we believe we are improving the lives of our customers. Besides, the bank plans to empower the needy and the lower income earners through Islamic SACCOS and other organizations where possible.

Why Amana Bank serves non-muslims?

Amana Bank is for all and there is no restrictions in Sharia to serve non-Muslims. Amana Bank understands that financial services is a human necessity and Shari’ah objectives is to secure benefits and fulfill human necessities in line with its rules and principles.

Who are the shareholders of the bank?

The shareholders of the bank are institutions and individuals. For more information, please find their names in the audited financial statement on our website: www.amananbank.co.tz

Why Amana Bank is not closed for Friday prayer while its full Sharia compliant bank?

Doing business during Friday prayer is not allowed for Mukallaf (Muslim male, mature, dweller of the town and sane) and allowed for others. Amana Bank Shari’ah Board resolved that Amana Bank as a business enterprise is allowed to open during that time provided those who run it are not obliged to pray Jumuah (female staff or non-Muslims). As for those obliged and allowed to go for prayer but choose to remain, the fault is theirs and not the bank, for the bank has allowed them to go for Jumuah.

Some of the facilities AB offers fall under speculation or gharar which goes against Sharia principle i.e. guarantees, how can we justify this?

Amana Bank offer variety of guarantees using Kafala contract which is permissible Shari’ah compliant instrument. These guarantees may involves minor gharar (Gharar yasir) such as uncertainty of occurance which is unavoidable. However, Sharia prohibited excessive gharar (Gharar fahish) which is voidable.

The value of paper currency depreciates in inflationary situation in order to compensate lenders for erosion in the value of their principal, a scheme of “indexation” has been suggested. Is such a scheme acceptable from an Islamic banking point of view?

“It is not acceptable. Islamic point of view on lending
is that of charity rewarded ten-fold by the Almighty compared to donation. Hence though financially the value for money is lost due to inflationary situation, the rewards for it is never lost which is what the lender should aim
for. Furthermore, the root cause of decrease in the value of money is inflation which every government should
find a parmanent solution for it and indexation cannot resolve this in the long run. Hence rather than employing indexation, the lender should pressure the government
to curb inflationary situation in the country in first place. However, this isnot always feasible. Therefore Islamic banks can enter into Musharakah, Mudarabah and diminishing Musharakah transactions wherein their
return can automatically be adjusted with an inflationary situation. The rental rate for a short duration can be
fixed or variable. Accordingly Islamic banks can charge rental in Ijarah at a higher rate, if already provided in
the agreement, for any remaining period of the lease. However the rentals for a particular period, once accrued, cannot be indexed.“

Why Amana Bank doesn’t share losses with its depositors?

The current regulatory environment doesn’t recognize pure profit and loss sharing mechanism. Hence, depositors funds are protected from any losses arising from banking business. However, though sharing of profit and loses is the essence partnership contract, it has its own operational challenges to do so especially in a market where conventional banks are still strong like Tanzania. Unless regulatory framework changes, Amana Bank shareholders agrees to absorb losses and share the profit only.

What Amana Bank does in case of delays to repay?

In case the customer experience difficulties to repay timely, he should immediately notify the bank, stating the reasons for his delays and may seek extension of repayment period. The bank will evaluate the reasons and if satisfied extend the period after consulting the customer. However, if he does not inform the bank, the bank considers him as defaulter and hence shall enforce him to repay. As gesture of commitment, at the beginning customers have to commit themselves to pay a certain amount of money for charitable purposes managed by the bank Shari’ah board in case they default.

What are the instruments employed by Amana Bank?

We employ Mudharaba, Murabaha, Qard, Kafala and Ijaratul A’mal contracts.

Why do we charge guarantees as conventional banking are doing? Is it sharia compliant?

Islamic Banks world wide charge a fee for service it offers. The reason for charging a fee is because it’s a service that the bank incurs some administrative expenses and expose itself to financial risk in case the guarantee is called. The only difference between AB guarantee and conventional bank guarantee occurs when the guarantee is called, conventional bank will turn it to interest bearing loan where as under Islamic banks its loan repayable at cost without any additional charges.

Why do we charge below minimum balance fee for failure to deposit the same day when the customers open an account (Existing Customers). Is it sharia compliant?

It is not Shariah compliant to charge customer for failure to deposit same day after the account was opened. The branch managers should refund customer immediately upon occurance.

Why do we have penalty clauses in Murabaha agreements while some scholars ruled that it is non sharia compliant?

Our Shari’ah supervisory board resolved that the clause doesn’t not invalidate the Murabaha contract because the clause aims to deter against moral hazards which is one of the source of credit risk. Under the clause, the customer commits himself and a sign of goodwill, that he will service his liability without failure. Furthermore, the penalty amount is channeled for charitable use under the supervision of Shari’ah board once the customer has failed to notify the bank on his failure to pay. It is important to note that, Amana Bank doesn't benefit with a single coin collected as a penalty but rather takes the trouble to distribute it to those who deserve. This practice is also supported by the Shari’a board of AAOIFI based in Bahrain.

Why do we go into insurance arrangements while it is not sharia compliant?

The bank’s customer and the public have interest in the bank since they have entrusted it with their funds to conduct business. The key bank business is to provide finance to deficit unit using various arrangements and hence requires a collateral. The collateral is exposed to many risks such as fire and other perils which may render it valueless to repay the amount of finance taken. To protect public Maslaha (interest) and the financial system of the country and due to absence of Islamic Insurance (Takaful), we have to use conventional insurance for that purpose until we have Takaful. This is permissible dharura (emergence) since in case of failure to have an insurance, the public shall suffer huge losses and may lead to collapse of the financial system.

May I know the indicative return on fixed deposit?

The bank has historical information on how much was paid previous quarters which it can share with you or provide you with indicative rate of return on deposit placed. However, we shall pay the actual profit based on the income from financing for the period.

In murabaha contract, who is incurring the clearing charges of the cargo from port to customer’s premises?

It is one of the discussion points before financing through Murabaha. The bank is willing to accommodate the cost of clearing, customs and transportation. However, customers prefer to handle this charges themselves to reduce the cost of finance.

In case of serious problem can customer holding hajj account allowed to withdraw?

Yes! He may request the bank to allow him to withdraw his funds from the account.

What are differentiated services that An-nisaa account offers to women?

Separate Woman teller as well as free entrance to annual women conference sponsored or organized by the bank.

Why Amana bank don’t offer small loans to customer compared to other conventional banks?

Separate Woman teller as well as free entrance to annual women conference sponsored or organised by the bank.

Exchange Rates

18-Jun-2018 // TZS

UK Pound STG2,942.24
Euro EUR


US Dollar USD 2,248.83

Full Rate Sheet

Customer Service:

Tel. 0657 980000

Email: customerservice@amanabank.co.tz

"That which you give as interest to increase the people’s wealth increases not with God; but that which you give in charity, seeking the goodwill of God, multiples manifold.
(Surah Ar Rum, Verse 39)"