SBP Islamic Banking Bulletin, July-Sep 2007

Provision of islamic microfinance products and ser

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provision of Islamic microfinance products and ser- vices by financial institutions. These guidelines are aimed at broadening the coverage of microfinance products and services to low income segments of the society in a Shariah compliant manner. These guide- lines stipulate four types of institutional arrangements for offering Islamic microfinance viz: 1. Establishing Full Fledged Islamic Microfinance Banks (IMFBs) 2. Islamic Microfinance Services by Full-fledged Is- lamic Banks 3. Islamic Microfinance Services by Conventional Banks 4. Islamic Microfinance Services by Conventional Microfinance Banks (MFBs) Developments at Islamic Banking Department, State Bank of Pakistan Page 10 “Those who devour Riba shall rise up before Allah like men whom Shaitan has demented by his touch; for they claim that trading is like usury. But Allah has permitted trading and forbidden usury. He that receives an admonition from his Rabb and mends his ways may keep what he has already earned; his faith is in the hand of Allah. But he that pays no heed shall be among the people of fire and shall remain in it forever.” (Al Baqarah 275 - Al Quran)
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July-September 2007 IBD Circular No.06 of 2007 - Informa- tion about Islamic Banking Windows All banks with Islamic banking Branches have been advised to submit information about Islamic Banking windows before start of window operations to IBD and thereafter information about operations of these windows should be submitted along with quarterly report of condition on a prescribed format. IBBs have been advised through the said circular to submit to Islamic banking department following information before start of each Islamic banking window opera- tions:- Details of products & services to be offered in IB window Details of systems and controls put in place in compliance with IBD Circular No. 2 of 2004. Commission/fee arrangement with authorized branch. Details about training of Human Resource in Is- lamic Banking. Contact details of Islamic Banking Window Further, consolidated information about Islamic banking window shall be submitted to the Director Islamic Banking Department, State Bank of Pakistan along with Quarterly Report of Conditions as per the format enclosed with the circular w.e.f quarter end- ing 31st December, 2007 IBD Circular Letter No. 05 of 2007— Declaration of Weightages & Profit Sharing Ratios It has been observed that only few Institutions offer- ing Islamic Banking are regularly updating weight- ages & Profit sharing ratios, before beginning of the period concerned, on their websites. Therefore all Institutions offering Islamic Banking have been ad- vised through this circular letter to make sure that relevant weightages and ratios are updated regularly, before start of the period concerned, keeping in view the following minimum standards: Weightages & Profit sharing ratios must be made available to all constituents before beginning of the period concerned. The weightages & Profit sharing ratios must be available on website. The statement declaring weightages & Profit shar-
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