Process for Standardization of Shariah Practices

The shariah board of sbp advises on the procedures

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The Shariah Board of SBP advises on the procedures, laws and regulations pertaining to Islamic Banking in line with Shariah principles. All the instructions / guidelines pertaining to the Islamic banking Industry are issued with the approval of SBP Shariah Board. Conflict Resolution in Shariah Rulings is also managed through the Shariah Board of SBP as in case of any difference of opinion the decision of SBP Shariah Board is considered final. The Shariah Board members are well versed with local & international practices both in the field of banking as well as Shariah and are thus instrumental in ensuring that the advice given to SBP is in line with international practices.
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2. : Each Islamic banking institution (i.e. Islamic Bank and conventional bank having Islamic Banking Branches) is required to appoint a Shariah Advisor as per Fit and Proper Criteria prescribed by SBP. The requirement for Shariah Advisors to meet the said criteria ensures that they have adequate and relevant education, knowledge and experience, which in turn plays a vital role in harmonization of Shariah Practices in different Islamic banking institutions. Shariah advisor of the bank is responsible to ensure that all the products and services, operations and documents of the bank are compliant / consistent with the Shariah Rules and Principles outlined for the respective modes of financing. Before launching any new products the banks are required to get formal approval from the Shariah Advisor regarding Shariah compliance of the product and its related documents. 3. : Essentials of Islamic modes of Financing entail the basic principles of Islamic modes of financing that have to be observed by Islamic banking institutions while designing their product structures, manuals policies etc. These essentials ensure compliance with minimum Shariah Standards by the Islamic banking institutions. Model Agreements for Islamic Modes of Financing
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The Shariah Board of SBP advises on the procedures laws and...

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