With a view to increase the share and outreach of Islamic banking in the country, existing scope of operations of IBWs is being enhanced.
2. In this context, it has been decided to allow IBWs to offer all types of Shariah compliant financing products. All conventional banks already having IBWs shall submit their duly approved ‘IBWs Policy’ to Islamic Banking Department, State Bank of Pakistan as per instructions given in Annexure-I within three months of issuance of this circular. IBBs desirous to start IBW operations shall submit duly approved ‘IBWs Policy’ at least one month prior to the deadline set under Para D (iii) of Annexure-I for submission of consolidated Annual Branch/IBW Conversion/Expansion plan.
3. All IBBs operating IBWs shall submit quarterly data using the attached template (Annexure-II).
4. This Circular supersedes all existing instructions on operations of IBWs, issued by Islamic Banking Department, State Bank of Pakistan.
5. The said instructions shall become effective immediately. Any non-compliance with provisions of the revised instructions shall render the bank liable for penal action under the relevant provisions of Banking Companies Ordinance, 1962.
6. Please acknowledge receipt.
Encl: Annexure-I: Revised Instructions on IBWs Operations
Annexure-II: Reporting Format