The Presidents/Chief Executives
All locally incorporated banks
Dear Sir/Madam,
Guidelines
for conversion of conventional banks into Islamic
- Broad parameters
In pursuance
of SBP Vison 2028 and to facilitate banks
in their conversion from conventional to Islamic,
SBP has developed broad guiding parameters
which will help banks to devise their own
conversion plans. Accordingly, banks may consider
following broad parameters to prepare their
conversion plans:
- Vision and strategy
- Governance structure
- Business conversion milestones and timelines
(internal milestones for conversion of assets,
deposits, financing, investments, syndicated
transactions and non-funded portfolio and
branches, etc.)
- Gap analysis with respect to policies,
products and services, infrastructural requirements,
human resources, identification of issues/challenges,
potential areas to work on to achieve target
of conversion, etc.
- On-boarding employees of the bank and
strategy for their training and capacity
building
- Communication plan with stakeholders (internal
and external)
- Customer facilitation (awareness creation
and information sharing with bank’s
customers and complaint handling mechanism)
2. The banks may approach Islamic Finance
Policy Department, SBP for further guidance
on the subject.
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