Criterea for setting up an Islamic Bank

Xi application shall stand disqualified if any of the

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xi) Application shall stand disqualified if any of the sponsors and/or Directors their spouses or firms:- a) has been convicted by a Court of law in Pakistan or abroad for a criminal offence. b) has been associated with any illegal activity especially banking business, deposit taking, financial dealings and other business;
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c) has failed to meet his or her obligations to banks and other financial institutions. They shall furnish names of the banks/DFIs alongwith the names of the branches with which they have had dealings. Bank reports are also required to be submitted; d) has defaulted in payment of taxes. They shall indicate their National Tax Numbers; e) is or has been associated as Director/Chief Executive with the Corporate Bodies whose corporate and tax record including customs duties, central excise and sales tax has been unsatisfactory. They shall name the corporate bodies, their bankers and disclose their tax numbers and dividend record. Those not so associated with Corporate Bodies would be required to indicate their occupation/profession/trade and highlight their achievements; f) in the opinion of the sanctioning authority enjoys adverse reputation regarding integrity and performance. xii) Neither one person can be a Director in more than one financial institution nor one group should have more than one bank. xiii) Not more than 25% of the sponsor Directors shall be from the same family as defined in Section 5(ff) of the Banking Companies Ordinance. xiv) The Chief Executive would be a professional with no adverse information regarding his integrity and performance and shall require prior clearance of State Bank of Pakistan.
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  • Fall '11
  • Finance, Fractional-reserve banking, Sharia, Sponsor Directors

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