KARACHI, Sept 1: Islamic banking has shown a tremendous growth and is fulfilling the requirement of the people.

It was observed in a one-day seminar on Risk Management Framework for Islamic Banking Institutions organised by the State Bank on Monday.

The seminar, in which senior officers from SBP and Islamic banking industry participated, was held to discuss Risk Management Framework rolled out by the State Bank recently on the basis of Risk Managment Standard issued by the Islamic Financial Services Board.

The Risk Management Guidelines for Islamic Banking Institutions (IBIs) have been developed by tailoring the IFSB guiding principles on Risk Management to Pakistan’s market conditions.

Pervez Said, Director SBP Islamic Banking Department, in his opening remaks said that keeping in view the expectations of the people and peculiar nature of Shariah-compliant transactions, there was a dire need to develop new financial risk management techniques and methodologies.

He informed the participants that the SBP had developed a curriculum for Islamic banking courses and sent to Higher Education Commission, which has appreciated SBP’s efforts in this regard. The risk management guidelines are in addition to the various risk management guidelines issued by the State Bank from time to time and IBIs are required to comply with both the sets of guidelines, Mr Pervez added.