Process for Standardization of Shariah Practices

Model agreements for islamic modes of financing have

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Model Agreements for Islamic Modes of Financing have been introduced in order to facilitate the existing Islamic banks and the potential market players in developing Islamic banking products in a harmonized manner (without restricting the process of product innovation). 4. Shariah Compliance Inspection : SBP conducts Shariah Compliance Inspection on the basis of recently developed Shariah Compliance Inspection Manual for Islamic Banking Institutions. Shariah Inspection helps in identifying variation in procedures adopted by different banks. The decisions on Shariah Inspection findings are also a source that helps in achieving the goal of having standardized procedures for Shariah practices in the Islamic banking industry. 5. Meetings of Shariah Advisors : When Shariah opinion is required regarding an Islamic banking issue of mutual/collective interest, the same is taken up in the meetings of Shariah advisors for discussion and possible resolution if so required. In case the issue requires detailed study/clarification, a sub committee is formed from the panel of Shariah Advisors to do some research and submit/present their findings to SBP. In case of need the matter under consideration may be taken to the SBP Shariah Board for its final resolution. Since some of the learned Shariah Advisors are based in other parts of the globe like Middle East, we also get feedback/views based on their global prospective/experience through their representatives.
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New Initiatives for bringing in further Standardization in Shariah practices. 1. Adoption / Adaptation of Shariah Standards developed by Accounting and Auditing Organization for the Islamic Financial Institutions (AAOIFI) . The introduction of international players in our Islamic banking industry has further necessitated the need to bring our industry at par with the global Shariah standards. Shariah Standards developed by Accounting and Auditing Organization for the Islamic Financial Institutions (AAOIFI) are an important and effective source available for bringing in the desired standardization in the Shariah practices. In order to bring our industry at par with the international standards and also
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Model Agreements for Islamic Modes of Financing have been...

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