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Islamic Banking: SBP receives three applications

KARACHI: Pervez Said, Director, Islamic Banking Department (IBD) of State Bank of Pakistan (SBP) disclosed on Friday that the central bank has received three applications for the start of full-fledged new Islamic banks in Pakistan.

Addressing the launch of Islamic banking operations of Standard Chartered Bank (SCB) at a local hotel, on Friday, he said seven conventional banks of the country have applied for the grant of permission to start Islamic banking operations.

Welcoming the launching of Islamic banking by the SCB, he said multinational bank have entered into Islamic banking and their entry would prove a ‘benchmark’ of Islamic banking in Pakistan.

He categorically said the SBP would no longer be issuing license for the establishment of new conventional commercial bank in the country and permission to establish new commercial bank would be issued to Islamic banks only. He said the SBP would also be undertaking the Sharia Audit of commercial banks, involved in Islamic banking.

He said Pakistani bankers involved in Islamic banking were superior to all in the Islamic world.

Earlier, presenting the welcome address Badar Kazmi, Chief Executive, SCB, Pakistan said: “The future of Islamic banking industry in Pakistan is extremely promising”.

He said the SCB is the first international bank to offer Islamic banking products in Pakistan.

He mentioned that the SCB has successfully executed Pakistan’s first ever-structured rate swap for a notional amount of $500 million for the Government of Pakistan.

Abid Sattar, Head of Consumer Banking, while welcoming the guests, said the SCB has started dedicated Islamic banking branch at Hotel Metropole, offering Islamic products such as current accounts, auto finance and home finance with plans to introduce corporate banking related products during the course of the year.

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