Circulars/Notifications - Banking Policy Department  
 BPD Circular No. 01
January 1, 2003  

All Banks

Dear Sirs,

Policies For Promotion Of Islamic Banking

 

In order to promote Islamic Banking in Pakistan, State Bank is following a three-pronged strategy as under:

I)     Establishment of full-fledged Islamic bank(s) in the private sector;


II) Setting up of subsidiaries for Islamic Banking by existing commercial banks; and
III)Allowing Stand-alone branches for Islamic banking in the existing commercial banks.


2.In line with Part-I of this strategy, on 1st December, 2001, State Bank of Pakistan had already issued detailed criteria for setting up of Scheduled Islamic Commercial banks based on Sharia Principles in the Private Sector in the form of a Press Release, which is reproduced at Annexure-I.

3.As regards Part-II of this strategy, in terms of Banking Companies (Amendment) Ordinance, 2002 notified in the Gazette of Pakistan dated November 4, 2002, inter alia, a new clause (aa) has now been inserted in sub-section (1) of section 23 of the Banking Companies Ordinance as follows: 

(aa) the carrying on of banking business strictly in conformity with the Injunctions of Islam as laid down in the Holy Quran and Sunnah”

4.  Therefore, the scheduled commercial banks are henceforth allowed to open subsidiaries for Islamic Banking operations. Accordingly, a Detailed Criteria for setting up of Islamic Banking Subsidiaries by existing Commercial Banks has been prepared, which is enclosed at Annexure-II.



5. For Part-III of this strategy, Guidelines for opening of Stand-alone branches for Islamic banking by existing commercial banks, enlisting Eligibility Criteria, Licensing Requirements and other operational guidelines on the subject have been prepared. These Guidelines are enclosed at Annexure-III.



6. Those interested in establishing Scheduled Islamic Commercial Banks in the Private sector, Subsidiaries or Stand alone branches for Islamic banking, may apply to the Director, Banking Policy Department, State Bank of Pakistan, I.I. Chundrigar Road, Karachi in line with the above-mentioned policies.

Encl: as above.
1. Annexure-I (Islamic Commercial Banks)
2. Annexure-II (Islamic Banking Subsidiary)
3. Annexure-III (Islamic Banking Branches)
4. Annexure-A
5. Application Form for Islamic Commercial Bank
6. Annexure To Form–A

Yours faithfully,
(Muhammad Kamran Shehzad)
Director

BPD Circulars/ Circular Letters issued in 2002
       
Home
About SBP
Publications
Economic Data
Press Releases
Circulars/Notifications
Laws & Regulations
Monetary Policy
Help Desk
SBP Videos
Feedback
Contact us
What's New?
Speeches
Online Tenders
Web Links

Educational Resources
Regulatory Returns
Library
Rupey ko Pehchano
Events
Zahid Husain Memorial Lecture
Careers
Sitemap
 
Best view Screen Resolution : 1024 * 768
Copyright © 2016. All Rights Reserved.