Islamic banks are playing an active role in this aspect by putting comprehensive Shariah controls and mechanisms in place. The Pakistani Islamic Banking industry, particularly, Meezan Bank has made notable efforts and progress in this area. In the year 2013, Meezan Bank was recognized as the ‘Best Research & Development’ institution by the Global Islamic Finance Awards. This achievement goes onto show the support of the central bank which has led Meezan Bank as being referred to, a benchmark of Shariah Compliance in both local & global Islamic Finance industry.
Examining the Prudence of Islamic Banks: A Risk Management Perspective
PDF - Risk Management
Riba (interest) free and Gharar (uncertainty) free nature of Islamic banking together with real asset/service-backed transactions ensure that an efficient, effective and robust risk management mechanism is in place in Islamic banks.
The recent re-launch of Islamic Banking in Pakistan by SBP has been based not only on the lessons learnt from the history of Islamic Banking efforts in Pakistan but also on the experiences of other countries in the world that are currently known for their lead role in Islamic finance sector e.g.; Malaysia and Bahrain.
KAP Study: Knowledge, Attitude and Practices of Islamic Banking in Pakistan
PDF - Survey Analysis
This initiative is a reflection of State Bank of Pakistan’s (SBP) commitment to promote Islamic banking in the country. The project owes to UK Department for International Development (DFID) for financing this study.
The Governor of the State Bank of Pakistan, Dr. Ishrat Husain gave a comprehensive outline on the evolution of Islamic Banking in Pakistan. He presented his paper at a seminar on Islamic Banking held recently at the Islamic Chamber of Commerce & Industry building, Karachi sponsored by Meezan Bank Limited.
Futures, Options and Swaps: What Shariah Experts Say?
PDF - Jurisprudence
Should Islamic financial institutions have the freedom to dabble in derivatives, like their conventional counterparts? According to one view derivatives add value and are justifiable on efficiency grounds. At the same time, the Shariah does not perhaps explicitly forbid such contracts, as these are of recent origin.
Principles of Shariah Governing Islamic Investment Funds
PDF - Investment
The term "Islamic Investment Fund" in this article means a joint pool wherein the investors contribute their surplus money for the purpose of its investment to earn halal profits in strict conformity with the precepts of Islamic Shariah.
The 19th century was a century of political oppression whereby the powerful Western nations enslaved most of the Asian and African nations including a large number of Muslim countries. The present century, which is nearing its end, has witnessed the gradual independence of these countries from Western imperialism…
It was a momentous event, as big as the creation of the country itself. On 14 Ramadan 1420, the Shariah Appellate Bench of the Supreme Court of Pakistan gave its landmark decision banning interest in all its forms and by whatever name it may be called…
This article provides a comprehensive overview of securitization, its types, structures, relevant Shariah guidelines and opportunities. The writer emphasizes Islamic securitization using popular Shariah-compliant structures of Musharakah and Ijarah, with live case studies for better understanding.
Microfinance is the provision of financial services (including but not restricted to micro-saving products, small sized loans, and microinsurance) to people who do not have access to or are neglected by mainstream commercial banks and financial institutions. These institutions face problems of funding sustainability and economic viability.
The successful launch of an International Islamic benchmark from the platform of Thomson Reuters as an alternative to LIBOR last year is a significant achievement of the Islamic banking industry. IIBR offers a rate contributed by a global panel of Islamic banks with fully segregated funds.
Islamic Banking Industry – Growing Amid Challenges
PDF - Market Outlook
Islamic Banking and Finance growth has generated considerable interest in the financial world in recent years. Its ability to offer ethical and innovative solutions, especially in underserved markets, marks it as a socially responsible model with significant growth potential.
