Mubasher: Kuwait Finance House (KFH) announced that it signed Euro Vostro account agreement with KT Bank AG to provide Euro clearing and settlement services for KFH, according to a recent statement.

KT Bank is considered the first bank in Germany and in the Eurozone with Islamic business model, in terms of Euro Vostro Account Services.

Following this agreement, KFH, Kuveyt Türk, and KT Bank AG are jointly expected be the driving pioneers of Islamic banking in the euro area.

The Kuwaiti bank KFH is one of the leading Islamic financial institutions across the world, and a main shareholder of KT’s mother bank Kuveyt Türk Katılım Bankası A.Ş, according to the statement.

As a direct member of Target 2 and SEPA payment schemes, KT Bank AG provides clearing and settlement services in Euro currency to financial institutions, and automatically routes all incoming and outgoing Euro payments across the world according to EU standards.

KFH clarified in its statement that “A vostro account is the account a correspondent bank holds on behalf of another bank.”