Criterea for setting up an Islamic Bank

V to be able to commence business the bank shall have

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v) To be able to commence business the bank shall have a minimum paid up capital of Rs 1000 million and also shall at all times maintain minimum capital adequacy Ratio of 8% based on risk weighted assets. vi) At least 15% of the total paid up capital shall be subscribed personally by the Sponsor Directors. The number of Sponsor Directors shall not be less than seven. The amount proposed to be subscribed by each sponsor Director is required to be indicated. vii) Sponsor Directors should have to declare personal Net Worth, which should not be less than the amount to be subscribed by them personally. The Net Worth of each sponsor Director is required to be indicated and supported by a duly authenticated copy of the latest Wealth Statement filed with the taxation Department. In the case of sponsor Directors resident in countries where filing of Wealth statement is not a requirement of law, a certificate of personal Net Worth and general reputation issued by an international bank of repute would be acceptable. This facility would also be available to applicants who have recently returned to Pakistan. viii) Sponsor Director(s) subscribing more than 5% of the total paid up capital shall clearly indicate their request separately. However such request should commensurate with his net worth. ix) Sponsor Directors shall not dispose of their shares in any manner whatsoever for a minimum period of 3 years and thereafter only with the specific written approval of the State Bank. x) Foreign investment by sponsor Directors shall be permissible only on the basis of capital being non-repatriable, but dividends will be remittable abroad.
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