Islamic banking system offers huge growth opportunity

SBP governor reaffirms support to Shariah-compliant banking, digital transformation

KARACHI:

The transformation of banking system from conventional to Shariah-compliant mode in light of a decision of Shariah court and the spread of digital technologies offer a huge opportunity for the growth of banking, said State Bank of Pakistan (SBP) Governor Jameel Ahmed.

He reaffirmed the support being offered by the SBP in the advancement of digital transformation and the unwavering support for Islamic banking in the financial industry.

He was speaking at a conference on the “Role of Banking Sector in Business and Economic Growth of Pakistan”, conducted by the National Institute of Banking and Finance (NIBAF) in collaboration with the Institute of Cost and Management Accountants of Pakistan (ICMA Pakistan) on Friday.

The SBP governor stressed the need for banks to leverage innovative financial solutions in order to achieve a higher level of financial inclusion, especially for the largely excluded segments such as women, small businesses and agriculture.

He encouraged banks to focus on developing and designing products with consumer interests in mind.

Ahmed reiterated the SBP’s resolve to foster a dynamic and stable banking system, geared towards economic welfare of society. He pointed out that the banking sector continued to serve the needs of the economy and make progress on the key public policy objectives of financial inclusion, innovation and financing to priority sectors, given the recent challenging global and domestic economic environment.

“Banking system can better serve business sector activities by offering smart and innovative digital financial services,” he stressed and added that banks must ensure that financial innovation was customer-centric, which would result in faster, safer and cheaper access to financial services.

ICMA Pakistan President Shehzad Ahmed Malik emphasised that a major challenge for banks across the globe was adapting
to innovation.

 

Published in The Express Tribune, December 3^rd, 2022.

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