In
order to improve transparency and disclosures and bring
standardization in Islamic banking institutions’
(IBIs) profit and loss distribution policies and practices,
the SBP is pleased to issue detailed Instructions for
Profit & Loss Distribution and Pool Management in
IBIs. These instructions are applicable with immediate
effect.
2.
With
the issuance of these instructions, Para IV of annexure-II
of IBD Circular No. 2 of 2008 stands withdrawn. Further,
the provisions of BPRD Circular No. 7 of 2008 regarding
minimum rate of return on savings deposits as amended
from time to time shall no more be applicable on Islamic
banking institutions.
3.
Failure to comply with the enclosed Instructions shall
invoke penal action under the provisions of Banking Companies
Ordinance, 1962.
Please
acknowledge receipt.
Encl.
Instructions for Profit & Loss Distribution