Business

Banking practices: Banks meet to improve Islamic financing SOPs

Forex and Interbank Musharakah agreements to be standardised.

Ppi April 22, 2013

The Islamic Banking sector is one of the fastest growing markets in the country, increasingly attracting new customers from the conventional banking market. PHOTO: FILE

KARACHI: Senior Shariah scholars and advisers of Islamic banks and conventional banks with Islamic windows have agreed to standardise Forex and interbank Musharakah agreements between Islamic banks and Islamic banking windows.

This move will facilitate the availability of Shariah-compliant venues for deployment of excess liquidity of Islamic banks. This agreement was reached during a meeting called by Meezan Bank Ltd, in which Shariah scholars discussed the challenges in Islamic Treasury Operations.

The participants held a detailed discussion over recent issues in Forex Trading and interbank products and agreed to standardise Forex and interbank Musharakah agreements to facilitate customers.

Meezan Bank’s Head of Product Development & Shariah Compliance Ahmed Ali Siddiqui said “This forum brings together extensive knowledge and experience of industry experts on a single platform and has the potential to play a crucial role in addressing the challenges faced by the industry.” The Islamic Banking sector is one of the fastest growing markets in the country, increasingly attracting new customers from the conventional banking market. This has subsequently raised the need for improving the services provided by Islamic Banks to cater to the influx of new customers.

The forum was attended by several prominent Shariah scholars including Dr Muhammad Imran Ashraf Usmani (Meezan Bank), Mufti Irshad Ahmed Ijaz (Bank Islami), Mufti Khalil Aazmi (Bank Alfalah), Mufti Zahid Siraj (Burj Bank), Mufti Najeeb Khan, Mufti Hasaan Kaleem, Mufti Ebrahim Essaa and Mufti Bilal Qazi (Meezan Bank) along with Product Development and Treasury professionals of all major Islamic banks and Islamic banking windows of conventional banks.

Meezan Bank is Pakistan’s eighth largest bank in terms of branch network.

Published in The Express Tribune, April 23^rd, 2013.

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COMMENTS (1)

tasneem | 11 years ago | Reply While it is heartening to see the rapid increase of Islamic Banking in Pakistan, there are quite a few issues which are totally unislamic . The ATM cards were cancelled and were replaced by VISA cards. I resent this because VISA is a Jewish company. I should have a choice. Other procedures which are not Islamic in spirit are being followed, and both my Islamic Banks said they were compelled to follow the directives of The State Bank Of Pakistan. Governor of the State Bank does not have a clue about Shariah. He should not interfere with the running of the Islamic banks; they should have a council of scholars well acquainted with shariah financing etc. It is tragic enough that our State Bank is Not run according to Shariah rules. When most of our " Finance" experts are products of western universities, they unfortunately develop a mindset very similar to their teachers who are of course not Islam-friendly.

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