The plans to wind down the Islamic Bank of Asia (IB Asia) is subject to IB Asia’s shareholders approval and regulatory approvals.
According to a filing in the Singapore stock exchange, DBS will continue to develop and distribute Shariah compliant products such as Islamic bonds or Sukuk, within the bank’s main operations.
The bank will also try to absorb the majority of IB Asia staff.
In 2007, IB Asia was established as a joint venture partnership between DBS Bank and prominent investors based in the Gulf Cooperation Council.
Headquartered in Singapore, IB Asia is involved in merchant banking activities.
Earlier this month, DBS Bank launched operations in Sydney, Australia, in a bid to expand its presence to 18 markets around the world.
In June, the bank secured regulatory approval to conduct institutional banking activities, such as corporate finance, trade finance, cash management and treasury solutions from its Sydney branch.
DBS CEO Piyush Gupta previously said: "Eight of Australia’s 12 largest trading partners are within Asia, reflecting Australia’s strategic location and increased economic participation with its Asian partners.
"With our growing footprint in Greater China, Southeast Asia and South Asia, we are better able to connect clients in Australia with Asia and vice-versa, and support them more meaningfully."
Image: DBS provides various commercial banking and financial services. Photo: courtesy of Deyoadutrys / Wikimedia Commons.
