SBP Islamic Banking Bulletin, July-Sep 2007

41 sahiwal 1 42 sargodha 1 43 sheikhupuar 1 44

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41 Sahiwal 1 42 Sargodha 1 43 Sheikhupuar 1 44 Sialkot 4 45 Sukkur 2 46 Tando Allahyar 2 47 Tank 1 Grand Total 289 S.No City No of Branches 1 Abottabad 3 2 Bahawalpur 1 3 Banu 1 4 Batkhela 1 5 Chaman 1 6 Charsadda 1 7 Dera Ghazi Khan 1 8 Dera Ismail Khan 2 9 Faisalabad 15 10 Gujar Khan 1 11 Gujranwala 7 12 Gujrat 2 13 Hangu 1 14 Hyderabad 5 15 Islamabad 14 16 Karachi City 92 17 Kasur 1 18 Kohat 1 19 Lahore City 58 20 Larkana 1 21 Mandi Bahauddin 1 22 Mansehra 2 23 Mardan 1 24 Mingora 1 City-wise breakup of Islamic Banking Branches As of December 31, 2007
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July-September 2007 Islamic banks asked to declare profit- sharing ratios (The News/ Business Recorder/ December 01, 2007) The State Bank of Pakistan (SBP) directed all Islamic banking institutions (IBIs) to update weightages and profit-sharing ratios on their websites by December 6, 2007. Banks use weightages and profit-sharing ratios to calculate distribution of profit as per Shariah laws cov- ering IBIs. The SBP observed that only a few IBIs were regularly updating their weightages and profit-sharing ratios on the websites, before the beginning of the pe- riod concerned, which the central bank termed a disap- pointing situation. Taking a strict notice of this slack- ness on the part of IBIs, the SBP directed IBIs to make sure that relevant weightages and ratios are updated before start of the period concerned. SBP said that weightages & profit sharing ratios must be made available to all constituents before beginning of the period concerned besides of making it available on website SBP also directed all banks to prominently dis- play the statement of weightages & profit sharing ratios in their Islamic banking branches. In addition, SBP pointed out that the statement declaring weightages & profit sharing ratios must at the minimum contain date of declaration, period for which they remain effective, all categories/pools & bank's equity share and their weighatage, types, sizes, tiers of accounts and actual rates paid during the preceding period. SBP seeks details of Islamic products The State Bank of Pakistan (SBP) has directed all those banks having Islamic banking branches (IBBs) to submit details of products to be offered on Islamic banking (IB) window before the start of each Islamic banking win- dow operation. The Islamic Banking Division of SBP, through Circular No 06 , stated that there was now a growing trend among banks to open Islamic banking windows and in order to strengthen the regulatory framework and maintain information about window operations, the SBP advised the banks to submit details of systems and controls put in place in compliance with IBD Circular No 02 of 2004. The SBP also asked for de- tails of commission/ fee arrangement with the author- ized branch and training of human resources in Islamic banking. The SBP circular noted that in terms of Para 10(v) of Annexure III to IBD Circular No.02 of 2004, banks having IBBs may authorize some of their branches to sell Islamic banking deposit schemes in
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  • Fall '11
  • Finance, islamic banking branches

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