Islamic banking and addresses the concerns like

Info icon This preview shows pages 5–7. Sign up to view the full content.

View Full Document Right Arrow Icon
Islamic banking and addresses the concerns like banker -customer relationship, deposit taking, legal cover to Shariah Board of State Bank and Shariah Advisors of Islamic banks, issues in liquidation, etc. We are further augmenting the regulatory framework by adopting or adapting the international standards issued by above mentioned international organizations in a gradual manner after a careful study in collaboration with the stakeholders. Shariah compliance inspection of Islamic banking institutions recently started by State Bank and the requirements for publishing the report of Shariah Advisor in annual accounts would boost the public confidence. Recently, one of the conventional banks has been granted permission by the State Bank to convert their Islamic banking branches into an Islamic banking subsidiary. We would encourage the other players having Islamic banking branches to convert themselves into Islamic banking subsidiary, whether individually or jointly. Capacity building and awareness The envisaged phenomenal growth in Islamic finance will further amplify the human resource needs. Developing human resource would be a greater challenge as Islamic banks need professionals that not only understand Islamic finance but also have appropriate skill set for banking operations. The Human resource need would particularly be more pressing in areas like product development, risk management, Shari’ah compliance and audit. The growing demand for Islamic banking professionals necessitates a corresponding growth in Islamic finance training. As a part of our Strategy for Islamic Banking, we plan to establish an Islamic finance training institute in collaboration with the Islamic banking industry in near future. Islamic banking industry also needs to follow the good example set by Takaful operators in developing a generic campaign for Islamic banking and finance for greater awareness among public.
Image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
July-September 2009 4 Coordination with Stakeholders Coordination is also required among various government authorities to ensure a level playing field for Islamic Financial Institutions. Some countries, like Malaysia, UK, Singapore and most recently France; have used tax neutrality and exemptions to help kick start IBs besides providing a level playing field for competing with the well established conventional banking. In Pakistan, amendments in tax laws have been introduced to facilitate Islamic banking transactions and we are coordinating with Securities and Exchange Commission of Pakistan for development of Non bank Islamic financial institutions. SBP plans to further streamline the cross border coordination with international institution by taking initiatives like; (1) seek technical assistance from IRTI/IDB, IFSB and INCEIF for education, training and conferences, (2) supporting IIFM in workshops for development of Islamic financial market, (3) encouraging Islamic financial institutions of Pakistan to seek membership in IFSB and opening of overseas branches.
Image of page 6
Image of page 7
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern