Please
refer to IBD Circular No. 2 of 2004 wherein SBP has given
the criteria for establishment of Islamic Banking Division
(IBD) and opening of standalone Islamic Banking Branches
(IBBs) at conventional commercial banks and BPRD Circular
No. 15 of 2007 on Branch Licensing Policy for all banks
including Islamic Banking Institutions.
2. While the above referred circulars cover opening of
new Islamic banking branches by conventional commercial
banks, however, the conversion of conventional banking
branches into Islamic banking branches have not been covered
in these circulars.
3.
In order to streamline the process and facilitate conventional
banks in conversion of their existing conventional branches
into Islamic banking branches, the detailed criteria has
been developed, which is annexed herewith.
4.
This criteria shall be applicable with immediate effect
and the banks henceforth shall prepare their conversion
plans and strategies in line with the criteria and submit
the same to SBP for in-principle approval and grant of
license for Islamic banking branches.
Please
acknowledge receipt.
Encl.
Annexure (Conversion Criteria)