November 11, 2007	Sunday	Shawwal 29, 1428

KARACHI, Nov 10: The State Bank of Pakistan on Saturday took another step for promoting Islamic banking in the country by allowing banks to open Islamic banking windows.

The SBP has asked all those banks having Islamic branches to expand their operations through these windows.

Earlier, banks having Islamic banking branches (IBBs) were allowed to authorise some of their branches to sell Islamic banking deposit schemes to efficiently utilise the existing branch network provided they comply with conditions mentioned therein.“There is now a growing trend among banks to open Islamic banking windows,” said circular issued by the SBP.

In order to strengthen regulatory framework and maintain information about window operations, all conventional banks having IBBs were advised to submit the required information before starting the Islamic banking window operation.

Banks will have to submit details of products and services, to be offered in Islamic banking window, including details of systems and controls put in place in compliance with SBP’s earlier instructions.

Banks will also provide details about training of human resource in Islamic banking and contact details of Islamic banking window, including commission or fee arrangement with authorised branch.

So far 13 conventional banks were in business with the Islamic products and 170 branches were functional across the country to cater to the demand of customers.