ADB report on Islamic Finance in Pakistan

Top 20 FREQUENT WORDS

islamic 1937 finance 922 financial 769 services 513 microfinance 498 banking 463 banks 320 access 317 report 305 feasibility 293 adb 271 improving 270 pak 267 sharia 248 component 238 institutions 233 training 220 development 217 business 212 international 211

DOCUMENT KEY POINTS

adb ta pak improving access to financial services feasibility study a islamic finance component disclaimer report on islamic finance component of improving access to financial services program iafsp the document is a strictly private and confidential document and must not be distributed to any person or persons other than the intended recipient without the express permission of asian development bank adb or fincon services inc

but it is necessary for the validity of istisna that the price is fixed with the consent of the parties and that necessary specification of the commodity intended to be manufactured is fully settled between them
adb ta pak improving access to financial services feasibility study a islamic finance component glossary of technical terms fiqh muslim jurisprudence or islamic law the science of sharia covers all aspects of life religious political social or economic

the amount payable by a muslim on his net worth as a part of his religious obligations mainly for the benefit of the poor and the needy

adb ta pak improving access to financial services feasibility study a islamic finance component executive summary the terms of reference of islamic finance component required to conduct a feasibility study for developing islamic finance institute business and finance academy by integrating findings of the consultative workshop on the subject and to carry out market analysis through baseline data for monitoring the microfinance sector characteristics ultimately building strategy to enhance inclusion through islamic microfinance

the final report is based on the findings of first and second interim reports the results of the nation wide survey comments of sbp on these reports outcome of the consultative workshop interviews discussions held with banks and microfinance institutions deliberations of the meeting of adb review mission

islamic finance academy the premise of the project of islamic finance academy is to strengthen institutional capacity of providers of islamic financial service including those operating in rural areas or intend to expand into rural areas

the supply side constraints include i limited geographic coverage ii limited scope of the programs iii insignificant linkages with the industry hence applied knowledge of islamic finance is missing iv programs not tailored to address unique requirements of the domestic market mostly relevant to international and industry infrastructure institutions v non inclusive nature of the offering ie certain initiatives not having the capacity to cater to women participation

adb ta pak improving access to financial services feasibility study a islamic finance component i to ensure that the programs are inclusive comprehensive demand driven and render a strong technology orientation i to uphold the religious context of islamic finance with balanced emphasis on quality acceptability and affordability in the near term the academy will focus on building a broad stakeholder base a bottom up approach to curriculum development and establishing a technologydriven nationwide delivery infrastructure

the findings of the feasibility analysis and the proposed implementation plan duly discussed with ministry of finance sbp and industry representatives conclude that implementation setting up of the academy would be led by the private sector on a built operate transfer bot basis under overall supervision of sbp
adb ta pak improving access to financial services feasibility study a islamic finance component i industry owned initiative with broad based buy in i championed by sbp i resilient financial plan i demand driven offering i international affiliations i local institutional capacity building i high profile faculty and trainer panel i world class infrastructure the academic legal and organizational structure as well as financial strategy and principle functions has been devised to achieve viable and competitive status over time

first interim report the prime purpose of first interim report was to address significance of extending islamic microfinance review islamic financial products and services currently in practice vis a vis adaptability in microfinance and experiences of islamic microfinance at home and abroad which could help determine the operational strategy
the data collected on sector characteristics issues and opportunities as well as assessing awareness and attitudes of service providers and communities in the subject area helped providing input for the national survey instrument nsi

second interim report the second interim report focused mainly the outcome of the consultative workshop comments of sbp on first interim report and of the financial sector specialist of adb suggesting revision of nsi
in view of acute shortage of resources with mfbs and mf ngos but having existence in rural and remote areas their linkage with the islamic banks was considered of prime importance where issues of sharia advisory and technology transfer could be resolved in most effective way

the government of pakistan recognizing the fact of rising poverty and wide variations across provinces and rural and urban population since reported in that a proportion of
government of pakistan accelerating economic growth and reducing poverty the road ahead poverty reduction strategy paper poverty reduction strategy paper secretariat ministry of finance government of pakistan islamabad december

issues in microfinance the best practices of microfinance emphasize package of financial services recovery of full cost of operation use of social collateral as monitoring and enforcement mechanism shift from charity based donor driven to market based sustainable approach mainstreaming and access to and not cost of microfinance to be the focus of microfinance strategy
although there is large difference between coverage of recorded by gop and the one indicated by pmn yet micro watch indicating this coverage to less than of the potential market supports the later

social collateral typically social collateral of microfinance groups is considered much stronger commitment than collateralized transactions where the local groups provide cost effective peer monitoring and screening to ensure repayment and overcome enforcement proble miss but and are willing to assume responsibility and ownership for them

when debt based modes like murabaha and salam commodity goods operation being different from loan are available the equity based modes like mudaraba and musharaka are preferred owing to their merit on profit and loss contribution creating confidence between client and mfi as well as affording innovation and introduction of technology

islamic social capital the social capital built up on injunctions of sharia is expected to effectively serve muslim populations and ensure sustainability of microfinance progra miss the following islamic values can become instrumental in organizing coherent actions of all social agents ie clients and their groups mfis and islamic banks i
that is why money has to be backed by asset to become productive therefore all financial transactions must be linked directly or indirectly to real economic activity

to meet damages of clients for reasons beyond their control and consequent loss of mfis cooperative insurance takaful can be operated by the clients and mfis
whereas self reliance is the key for self esteem fard al kifayah calls for social obligation to provide ways and means to help develop income earning opportunities for destitute who cannot afford at their own

ideas and experiences in islamic microfinance and takaful not adequate amount of literature is available on islamic microfinance and takaful
they have not paid any heed to this profit generating and welfare oriented objective probably due to lack of perception to this end

although most of them practice murabaha the sudanese islamic bank sib has successfully implemented musharaka and mudaraba providing reasonable return on investment to both parties the bank and the client
in bangladesh social and investment bank islamic bank bangladesh and ngos alfalah and rescue are the leading institutions mostly practicing bai muajjal

adb ta pak improving access to financial services feasibility study a islamic finance component table operations of islamic banks in sudan name of percent mode s in target methodology and conditions repay of total bank finance use group metho the murabah productive family affairs sections to prepare equal families installme sudanee modarba clients under productive family islamic musharaa small concept and deal with investment sometim enterprises bank and feasibility studies and project grace pe crafts and sib saving informal sector follow up in micro enterprises of repaym deposit activities

in case of modarba the bank provides entire funds while client provides work and management and keeps record of expenses and income during currency of the project
owing to general legal restrictions to collect savings and to promote credit and saving culture islamic relief has attempted to become partner with other financial intermediaries

islamic microfinance experience in pakistan the visible examples of islamic microfinance in pakistan can be counted as islamic relief pakistan irp rawalpindi islamabad akhuat lahore rawalpindi faisalabad karakoram cooperative bank kcb chilas skardu national rural support program mardan district muslim aid islamabad chakwal and cdwc in lahore
the bank also entered into cooperation with the banque nationale de development agricole to link up with international payments system facilitating herdsmen deposit their earnings from their business dealings in abidjian or dubai into their account using a swift transfer

finca uganda provides life and disability insurance to both clients and the institution where in case of accidental death or disability the insurance automatically pays the balance of the loan of the client
they consider risk mitigation through diversification of income sources savings insurance schemes and risk reduction through investing in infrastructure information education and health progra miss sewa in india provides an integrated insurance scheme covering sickness death widowhood maternity and loss due to flood fire and riots

the council of islamic fiqh scholars in ruled that conventional insurance was haram religiously impermissible due to gharar uncertainty with regard to happening of the event lack of information about extent of the compensation to be received by the insured and to be paid by the insurer
similarly the element of gambling involved in conventional insurance is prohibited where insured could receive huge amount of money without equivalent contribution or pays premium without getting any amount in return ie insurer gains at the cost of insured or insurer could make huge profits when premia collected exceed the clai miss riba is involved in two ways in conventional insurance

in life takaful a larger portion of contribution goes into investment fund as modarba and remains the property of participants whereas remaining portion of contribution goes into waqf fund as donation tabarru which should be utilized to compensate participants in case of mishap or loss

tobago the agricultural health coverage and the premium per family is per month mutual fund of costs not covered by the lebanon government social security fund amana takaful obtain cover against participants can obtain policy as a group and if at the end of insurance ati sri death disability and the policy year no claim is made by the insured group amana lanka a microfuneral expenses as well takaful insurance will sponsor a special event of the said takaful scheme a as special educational group

ngos considered as donor driven and inefficient organizations need to be linked to the financial sector mainly banks to leverage their resources as well as make use of savings
diverse occupations ie including farming karyana grocery store livestock rearing small scale restaurants hotels medical stores cloth shoes stores fruit processing auto and electricity workshops industrial homes small scale manufacturing weaving embroidery work industrial homes cap making fish farming etc

referring to the islamic microfinance the mainstream banks may have a good option of securitizing their portfolio engaged in islamic microfinance to help manage credit risk liquidity and capital requirement
adb ta pak improving access to financial services feasibility study a islamic finance component access to the financial services

the model presented by the author is worth considering in case islamic or conventional banks do not agree to undertake microfinance activity by establishing islamic microfinance divisions as suggested in the guidelines issued by sbp in this regard
leveraging capital for islamic microfinance in view of banks perception regarding risk in financing the poor dusuki has suggested that islamic banks may choose to provide microfinance services by establishing a special purpose vehicle spv a limited liability unconsolidated trust to be used for bankruptcy remoteness

social justice demands that borrowers and lenders share rewards as well as losses in an equitable manner and that the process of wealth accumulation and distribution in the economy would be fair and representative of true productivity
islam encourages earning of profits but forbids charging of interest because profits realized ex post are legitimate socially meeting justice and economically creating additional assets wealth whereas interest determined ex ante is a cost that is accrued irrespective of the outcome of business operation

this has been expressed in the prophet pbuh s saying al kharaj bi al daman and in the general fiqh maxim al ghurm bi al ghunm which means entitlement of gain is subjected to the responsibility for loss

prospects are being seen in more sophisticated markets of derivatives and islamic depository receipts to mange the risks to which the investors and the islamic financial institutions are exposed to
the other partners in islamic finance industry comprise islamic insurance takaful mutual funds unit trusts islamic stocks and commodities islamic capital markets liquidity management centers leasing and mudaraba companies and rating agencies

adb ta pak improving access to financial services feasibility study a islamic finance component rating and infrastructure building institutions which include accounting and auditing organization for islamic financial institutions aaoifi islamic financial services board ifsb international islamic financial market iifm international islamic rating agency iira islamic liquidity management center ilmc etc

size of islamic banking in pakistan according to islamic banking bulletin of sbp there were full fledged islamic banks and conventional banks operating islamic banking divisions expecting to reach branch network of in december
the plan has also expressed concern that none of the banks has come up for islamic microfinance nor it has requested for technical assistance in this regard as yet

although the main objective of product development is to serve the particular need of the customers poor people in this case with minimum cost and better returns the avoidance of sharia rules would undermine the efforts and render the product un islamic
product development in islamic finance a financial product or an instrument is based on a contract that results in financial asset of one enterprise and financial liability or equity instrument of another enterprise

adb ta pak improving access to financial services feasibility study a islamic finance component accordingly the financial contracts should follow i general principles observing civil aptitude free consent and moral values and ii objective specific principles prohibiting riba speculative behavior and commitment towards moral and ethical values

since the knowledge of the concerned stakeholders and their perception and attitudes towards various practices existing and expected play the significant role in adoption of new products and services these factors help to know the acceptability of new programs and their valuation by all of them
the paper suggests that the religious conviction is a logical key determinant of the use of islamic finance services but it is often not the only concern because most consumers also identify bank reputation service quality and pricing in determining their patronage of a particular financial institution

in another study carried out by bank indonesia and bogor agricultural university indonesia on potency preference and community aptitude towards islamic finance concludes that livelihood bank s professionalism accessibility knowledge level on islamic banking social status in religion perception in the forbidden interest and existence of islamic bank were the important variables affecting peoples decision to adopt islamic banking

review of islamic banking products for use in microfinance most of the islamic modes being used by the islamic banks are applicable in microfinance
sale transactions i murabaha financing banking murabaha and istijrar i salam financing parallel salam i istisna financing parallel istisna

murabaha is different from bai muajjal in the sense that later is a sale in which the parties agree that payment of the price shall be deferred but the amount of profit is not required to be disclosed
although the islamic banks are urged to gradually replace this mode with the ones based on partnership yet one can understand for the obvious reasons that murabaha would dominate the financing portfolio for many years to come

accordingly the revocable agency agreement specific or global is executed implying relationship between principal and agent under the laws prevalent in pakistan and the terms of murabaha agreement requiring the agent to acquire the requisitioned goods for and on account of the bank
in case of agreeing to finance the transaction the terms regarding amount and period of murabaha cost and contract prices value date freight and insurance rate of profit schedule of payment of murabaha price penalty for default detail of securities guarantees etc

in such case either the price is paid after a determined period or the seller leaves some money with the buyer out of which the buyer takes whenever he needs to purchase the goods
taking personal guarantee surety kafalah would be sufficient and supplies of items in recurring demand could be maintained by mfis or bulk purchases can be arranged for groups of clients

since the permissibility of salam was an exception to the general rule that prohibits the forward sale therefore it was subjected to some strict conditions to be fulfilled which include payment of full price at spot fungibility of commodity specific action of quantity quality and place and date of delivery
salam is ideal for financing agricultural operations where the bank can transact with farmers who are expected to have the commodity during harvest either from their own crop or the crop of others which they can buy and deliver in case their crop fails or produce is insufficient in quantity

the period of salam in the second parallel transaction being shorter the price may be little higher than the price of the first transaction and the difference between the two prices shall be the profit earned by the institution

because of the usual inability of mfis to be watchful in business of clients and incurring high cost thereof this mode is recommended for the most trusted clients and for larger groups deriving scale and affording to maintain business record and conduct efficient marketing
both entrepreneur s and investor s contribute to the capital in equal or varying proportions share the returns in pre agreed ratio and losses in proportion to the capital contribution

the enterprise property is converted into undivided ownership of both financier and the client which facilitates one of the partners to rent his part of property to the other and or sell one partner s equity in the business to the other

this includes for example a promise by the institution s client to set aside a portion of the return he may earn from the partnership for the acquisition of a percentage of the equity of the financier
in case the mudarib s funds are not permanent and change in amount as well as in period for which are invested a weightage system can be prescribed taking into account amount and tenor of the funds

in case the client is made agent of the bank to purchase the asset from the supplier on behalf of the bank the relationship of lessor and lessee starts only when the client has taken delivery of the asset from supplier and lessor allows using it
these conditions lead to independence of sale contract from the lease contract commencement of rent relationship of parties and their responsibilities especially with respect to expenses liabilities of parties in case of loss to the asset penalty for late payment of rent insurance of the asset residual value and termination of lease

downscaling operations of islamic banks existence and operation of islamic banks in urban areas reflects that underlying philosophy of islamic finance of distributive justice has been ignored

the expertise of islamic banks and academic institutions having track record of research in islamic finance and sharia should be required to develop new models and products for islamic microfinance
a higher profit sharing ratio can be decided in favor of mfi than the one followed generally in case of such arrangement

while traditionally zakat has been considered an individual act of zakat payer dispensing zakat directly to the beneficiary consensus has been built to allow institutions engaged in poverty alleviation to collect zakat as trustee
it aims to spiritually purify the zakah payer s assets and cause growth to both the payer growth in spiritual assets and beneficiary growth in monetary assets

mfis can individually or collectively establish zakat trust as separate entity and out of their own sphere where zakat can be collected and spent for both safety net and development of enterprise

the first and second interim reports helped to construct parameters of nationwide islamic microfinance imf survey meant primarily to help formulating strategy for improving access to financial services by enhancing inclusion especially of shariah compliant products and services
to identify and rank districts in pakistan where islamic mf outreach could be improved or extended in terms of financing by islamic microfinance banks divisions developing linkages with islamic mfis or downscaling operations of islamic banks

adb ta pak improving access to financial services feasibility study a islamic finance component towards management of their financial relationship and the part played by their religious beliefs in their financial exclusion
methodology a demand side the methodology was built on the premise that microfinance products are probably not acceptable to the target customers because these do not adhere to their social and religious notions

it is primarily impacted by how strongly the sample feels conventional methods of finance clash with their religious beliefs but is also affected by other factors such as level of trust in islamic banks to offer only islamic products level of religious adherence whether or not they expect islamic microfinance to improve their income and how religious they perceive themselves to be

it has been observed that actual borrowing or desire for borrowing is not always for productive purpose majority of the respondents have or wished to borrow for wedding in the family repairing renovating houses or to pay the hospital bills

needs evaluation islamic microfinance attribute scaling help identifying qualities that islamic banking can leverage to ensure a strong position if the same attributes are looked for by the customers
borrowing is important for rural population because of the seasonal nature of their income and need for income generation

the results of needs evaluation presented in annexure a reflect that location of islamic bank branch near the village riba free and uncollateralized product offering transaction in commodity instead of money pre finance orientation by service provider respectable communication with customers islamic product offering by local conventional bank and easy application process were the attributes of performance quality followed by exciting quality and expected quality
reverse qualities these qualities result in dissatisfaction when fulfilled and in satisfaction when not fulfilled

this segment is close follower of religion even goes one step ahead in the concept of riba and will need motivation to become a segment of islamic microfinance profiles at annexure a
knowledgeable pragmatic kp kps are from semi urban and urban sindh punjab and nwfp karachi jhelum sialkot and mardan

advice of the mosque imam and community showing disrespect leaders is quite effective in choosing islamic ii
to be more careful the drivers and barriers for each segment narrated in following table must be kept in view segment drivers barriers knowledgeable i

dissemination of information including product information awareness of the values and culture of the borrowing segment their current borrowing behavior and the cost of borrowing
supply side analysis supply side analysis addresses issues of islamic microfinance and microfinance policy environment in pakistan through interviews of experts in financial sector including from state bank of pakistan

willingness of mfis to offer imf windows major problem of mfis is of perception that these institutions cannot stand the test of the time
realizing infrastructure cost sbp believes in flexible convenient options for islamic micro finance including microfinance banks with islamic windows conventional with subsidiaries or islamic window or for new banks offering purely islamic microfinance

mfi s or banks which offer microfinance construe that the capacity is very much there the core requirement is human resource and development of a follow up procedure
most financial experts claim that mfi s have very little visibility and presence little is known about who is running them or practical demonstration of achievement

the results prescribe that proximity of service provider riba free and uncollateralized product offering pre finance orientation respectable communication with customers and easy application process were preferred by respondents to be some of the characteristics of islamic microfinance and as such should become policy drivers for islamic microfinance

even the categories representing na ve rejectionists and poorly informed low potentials can be convinced by educating them in respect of religious and economic rational of prohibition of riba asset based financing and profit and loss sharing

the modes aimed at equity participation and ijara can build confidence of poor through risk sharing and bring economic impact to the lives of poor
there is need particularly for islamic banks to diversify their products in microfinance for which persuasion at sbp level is required to be intensified including ease of regulation

the concept of productive family with which the banks have to work with is the winning point which enables close supervision by the bank representative and easier contact on the part of the client
financial services like savings and payment are generally not available to provide leverage to the livelihood of poor and mitigate risks to which they are exposed to

product selection keeping in view the products being practiced by islamic banks supply and demand characteristics of microfinance sector and opinion of service providers results of the survey the following products would be suggestive for islamic microfinance a
the procedure and documentation can be simplified and conditions of hamish jiddiyah and collateral can be ignored in view of social mobilization process and close monitoring of microfinance clients

the consultations would focus on sharia position of transaction in case the client takes possession of goods from time to time on behalf of bank mfi and through certain arrangement the price is paid later at the same time realizing certain amount of profit in the transaction or the feasibility of istijrar with advanced payment be looked into where certain amount is kept with supplier and the client or clients take possession of goods as and when required within that time period

diminishing musharakah dm while it may not be possible for banks mfis to finance under musharakah or mudarabah and rely on the business results declared by the client till the time sufficient experience is gained in fixed return modes the installment based dm can easily be operated to finance purchase of assets machinery equipment transport vehicles construction improvement of houses tourist huts small cafe restaurants etc
since the financing institution is owner of the property to the proportional extent a clause in the contract to the effect that financial institution acquires the property once the default is occurred and realizes its loss would minimize chance of default

the guidelines also prescribe mechanism to extend linkage of banks to mf ngos provided the later employ a sharia compliant mechanism and secondly the financial and technical base of ngos should be strengthened to undertake the activity by themselves
such new experiences would include social mobilization small size of loan and high operating cost high frequency of repayment informal processing appraisal of application use of social collateral maintaining relation at remote locations absence of credit information absence of trained staff etc

mfi model for islamic microfinance i to carry out the business of islamic microfinance mfi can proceed as under i mfi will set up an islamic microfinance division mfi imfd in its head office

i mfi imfd shall maintain fund of an appropriate amount to be named as islamic microfinance fund imff which shall be used to finance operation of mfi imfd

inclusion of poorest of the poor there is clear understanding that microfinance efforts can effectively be supplemented by incorporating zakat into the system provided developmental goals are focused instead of mere handout distribution

those who follow the laws of shariah closely and are more knowledgeable have credibility issues with the concept of islamic banking and will not go for islamic microfinance products unless there is considerable reassurance and information about the operating system
adb ta pak improving access to financial services feasibility study a islamic finance component mfis can individually or collectively establish zakat trust as separate entity and out of their own sphere where zakat can be collected and spent for both safety net and development of enterprise

the methodology for conducting this feasibility study involved examining the islamic finance environment in general and its progress in pakistan conducting meetings with sbp to discuss the strategy for collecting information on various parameters of the study establishing contact with various academic and training institutions engaged in islamic finance education in pakistan and other countries and based on a demand and supply analysis undertaking academic administrative financial and marketing analysis to give all necessary details for operating a sustainable academy
the scope of work included conducting a feasibility study to facilitate establishment of the academy and using the findings of the study as an input for a professional nationwide survey on islamic microfinance

ityy orrttuunnit oppppoalyssis o is a ann a ly demand side analysis gap analysis supply side analysis review of available required infrastructure case for islamic finance academy vision objectives pre requisites discussions with senior industry execs ility evaluation of training material of ifis feasib sis regular brainstorming with sbp interaction with int l stakeholders a naly business model desktop research industry workshop offering audience governance delivery primary research critical success factors expected impact financial plan h roac app roadmap for implementation chapter eight training need assessment

the industry is an established international phenomenon with presence in all major financial markets including north america europe gulf corporation council gcc asia pacific south asia north and east africa

the future development of the islamic financial services industry sector depends crucially on its ability to innovate in order both to offer a more complete and competitive range of products and services comparable in scope and pricing to that offered by conventional financial institutions and final report page of
adb ta pak improving access to financial services feasibility study a islamic finance component i accounting and auditing organization for islamic financial institutions aaoifi i international islamic financial market iifm i islamic financial services board ifsb i international islamic rating agency iira i general council for islamic banks and financial institutions gcibfi

one of the major challenges currently faced by the industry is shortage of qualified islamic finance professionals who can lead the industry into the next phase of its growth and prepare it to face more sophisticated and wide ranging issues both at micro and macro level
i risk management guidelines for islamic banking institutions i guidelines for islamic microfinance businesses i draft guidelines on islamic financing for agriculture please refer to section on supply analysis for detailed listing of islamic finance training providers sbp s website final report page of

sharia compliance framework i essentials and model agreements for islamic modes of financing specifying minimum standards for various modes of financing i instructions for the appointment duties and responsibilities and report of sharia advisors i establishment of a central sharia board to prescribe the qualification of sharia advisors and approve their appointments i instructions guidelines for sharia compliance i sharia advisors forum i standardization of sharia practices c
sbp through interaction coordination with relevant stakeholders has taken a number of steps for resolution of various issues faced by the industry such as liquidity management accounting taxation issues islamic export refinance scheme and training

to overcome this drawback islamic banking institutions need to utilize sbp islamic banking bulletin oct dec meezan bank st quarter financial report march sbp strategic plan for islamic banking industry in pakistan final report page of
other islamic commercial banks include al baraka islamic bank bankislami pakistan emirates global islamic bank dubai islamic bank pakistan and dawood islamic bank

keeping in view the dearth of islamic finance professionals and sharia scholars in the local islamic finance industry it is important to invest substantially in professional training and development of human resource
the sharia driven segment can be defined as those customers who would either not be a part of the banking sector or would only bank with an islamic bank or a dedicated islamic branch of a conventional bank

i decided to slow down the opening of these branches and banking institutions because i was deeply concerned that a we were out pricing the islamic banking products and services by bidding up the compensation package of the few experienced islamic bankers who were involved in a merry go round and b the islamic banks were compromising on the quality of the professionals by relaxing stringent standards of recruitment in their quest of finding people for their branches
the study concluded that with the islamic banking and finance sector estimated to grow between pc to pc a year in the gcc region some new jobs in the sector will have to be filled in the region alone within the next decade

although product offering under various segments is apparently similar such as corporate banking treasury retail banking and trade finance in the case of banking general and family takaful under insurance and mutual funds in capital markets there are certain distinguishing features of islamic products being governed by sharia

most of the advance academic programs offered by local institutes are for males only resulting in substantial demand for islamic finance related knowledge in the female segment which forms an important part of the workforce of local islamic financial institutions
at the entry level islamic banks have limited options to source graduates with specialization in islamic banking and finance as there are few academic institutions offering under graduate and post graduate programs in islamic banking and finance

in addition to soft skills there is a dire need to train these scholars in conventional banking and law to improve their understanding of the business and to facilitate development of practical islamic financial solutions
dearth of islamic finance specialists islamic finance specialists including treasurers lawyers product developers risk managers and sharia scholars will play a crucial role in sustaining the growth momentum of islamic banking in pakistan and in taking it to the next level

there is lots of growing interest and we have many more sophisticated sharia scholars who are graduating now but it s not growing fast enough to meet demand sheikh nizam yaquby one of the world s most respected sharia scholars told reuters

adb ta pak improving access to financial services feasibility study a islamic finance component sharia scholar positions doctor imran usmani member of the sharia committees of state bank of pakistan hsbc amanah meezan bank abn amro pakistan ubs switzerland mashreqbank guidance financial group ihilal financial services future growth equity fund doctor mohamed ali elgari sharia advisor of hsbc amanah abu dhabi islamic bank bahrain islamic bank dow jones islamic index saudi fransi bank director of islamic economics research centre at king abdul aziz university member of academic committee of idb and oic islamic fiqh academy source primary research
research development efforts to be intensified serious efforts are required in the way of islamic finance research and development to provide accessible accurate and value added information which is important for meaningful decision making amongst the stake holders

some of these associations are listed in the table below conventional industry associations area conventional finance risk global association of risk professionals garp treasury international group of treasury associations igta capital markets international capital market association icma securities industry and financial markets association sifma emerging markets trading association emta swaps derivatives international swaps and derivatives association isda finance trade bankers association for finance and trade baft financial analysis cfa institute innovation center for the study of financial innovation csfi source primary research
both types of research are required in case of islamic finance a basic for advancement of understanding since the industry is not yet mature and is still developing while applied research is needed to tackle various issues such as liquidity management standardization best practices etc

key institutes offering islamic finance programs name of the institution location north america and europe harvard islamic finance project cambridge us loughborough university leicester uk institute of islamic banking and insurance london uk durham university durham uk markfield institute of higher education leicester uk securities investment institute london uk middle east islamic research training institute idb jeddah saudi arabia islamic economics research center king abdul aziz university jeddah saudi arabia bahrain institute of banking and finance manama bahrain difx academy dubai uae final report page of
adb ta pak improving access to financial services feasibility study a islamic finance component chapter ten supply side analysis the tremendous growth in islamic financial services industry has encouraged some of world s reputed educational institutions like harvard to offer programs in islamic finance and banking to fulfill the shortage of trained professionals

the following institutes were selected for the supply analysis i international centre for education in islamic finance inceif malaysia i bahrain institute of banking and finance bibf bahrain i islamic research and training institute irti saudi arabia i dubai international financial exchange difx academy uae i university of loughborough uk
strategic alliances most of the observed institutes have strategic alliances and support from credible bodies which have significant influence in the home country

irti has academic alliances with umm al qura university king abdul aziz university in saudi arabia muamalat institute in indonesia economic research institute in iran institute of banking studies in jordan national college of business administration economics in pakistan awqaf organization in kuwait caspian research information centre baku state university in azerbaijan and international soft company in tunis

the board of executive directors is composed of a president president idb group and fourteen members seven of whom are appointed from member countries with the largest shareholding and seven are elected from the remaining member countries
the institute is operated by a management team which is assisted by various curriculum committees to offer market led training progra miss these committees are accounting career planning credit analysis information technology insurance international trade risk management treasury and capital markets committees

faculty most of the observed global institutes have qualified in house faculty members but also rely on international faculty experts to deliver the progra miss the faculty at inceif mainly comprises of individuals with mba and phd degrees from reputable international universities mainly in the us and the uk
program offering various types of programs are offered by the observed institutes including short training courses executive management programs certifications and post graduate progra miss however graduate programs related to islamic finance are not offered by any of the observed international institutes

adb ta pak improving access to financial services feasibility study a islamic finance component pgd in islamic economics banking and finance certificate course in islamic economics banking and finance source websites of the institutes primary research
research and other initiatives research and development activities are an integral part of product structuring and other initiatives as islamic finance is still in its development phase and requires dedicated initiatives to sustain the growth momentum

the post graduate diploma at bibf is offered to candidates who can demonstrate prior knowledge of commerce banking and finance and economics have banking or finance experience of up to five years or a business commerce banking or finance degree from a recognized final report page of

the fee for each publicly offered course depends on the duration with and charged per day for members of other nationalities and non members of all nationalities respectively
the externally offered courses have a fee of charged per day for members who are gcc nationals and charged per day for members of other nationalities and other non members

the diploma offered by bibf has the requirement of having at least pc attendance completing the required written assignments quizzes and passing the midterm and final exam
inceif s campus is equipped with a library having a growing collection of literature in islamic finance and is also a member of local publication supply system a cooperation of around libraries in malaysia for sharing of resources

local islamic finance training providers the following five institutes were examined in the local market to assess the islamic finance education training provided in pakistan i international islamic university islamabad iiui islamabad i center for islamic economics cie karachi i alhuda center for islamic banking and economics alhuda cibe lahore final report page of

nature of institutes the local institutes under consideration were of two types those that provide purely islamic finance education training and those that offer all kinds of progra miss the institutes dedicated solely for islamic education training services are iiui cie and alhuda cibe where as nibaf ibp offer all types of banking and finance progra miss
iiui has academic collaborations with al azhar university in egypt and four saudi arabian universities which are ummul qura university islamic university imam muhammad bin saud university and king abdul aziz university

the managing director provides strategic guidance and ensures implementation of the board s policies and is assisted by a team of specialists in the fields of economics banking and management on the academic side
alhuda is administered by a management team which has a ceo as its top authority with directors and advisors assisting him in day to day management of the institute

types of courses offered by selected islamic finance training providers institutes offering professional courses for institutes courses of short academic courses professional service term nature for providers practitioners iiui if if if cie if if alhuda cibe if nibaf if ibp if average no
the islamic finance related visiting faculty at ibp comprises of senior level executives and professionals including sharia scholars of various commercial banks of pakistan

offering of selected islamic finance training providers institute program offering iiui msc in islamic banking and finance bsc in islamic banking and finance pgd in islamic banking and finance cie pgd in islamic banking and takaful certificate course in islamic banking and finance certificate course in islamic takaful alhuda cibe pgd in islamic banking and finance short courses in islamic banking finance and takaful nibaf islamic banking certificate course ibp short courses in islamic banking and finance source websites of the institutes primary research
sharia scholars are an integral part of the islamic finance landscape ensuring not only sharia compliance of all transactions but also contributing to product development and research

job placement and current enrollment in the islamic banking sector students islamic banking and finance professionals academicians and people of other professions having an interest in islamic banking and finance have attended training programs from the selected institutes
to promote islamic banking and finance and attract students professionals to adopt islamic finance as a profession iiui cie alhuda cibe and nibaf conduct seminars and workshops as well

iiui enrolls students in undergraduate program for islamic banking and finance in msc program for islamic banking and finance and in ms program for islamic banking and finance each year
research other initiatives the study did not come across any major efforts to promote research activities in the industry or formal joint initiatives between the industry and the academia or a pan industry approach to new product development or diversification to new segments

the pgd program in islamic banking and finance at alhuda cibe does not target bankers only it caters to all individuals who want to obtain knowledge of islamic banking and finance whether muslims or nonmusli miss the short courses offered by alhuda cibe also target individuals wanting to enhance their islamic banking and insurance knowledge base irrespective of their association with the industry

the duration of the msc in islamic banking and finance offered by iiui falls between to years depending on the completion of credits while that of the bsc and post graduate diploma in the subject is year
the short courses offered by alhuda cibe do not have any admission requirements as they are workshop style progra miss the short courses offered by ibp also do not have any admission requirements

at nibaf the participants are evaluated for each of the modules in the certificate course through individual as well as a comprehensive test at the end

academic division provides all sorts of published material which include course books reading material photocopies training material handbooks of training and other publications of nibaf to professionals

a centre of excellence to promote research innovation and development of new ideas products and technologies will ensure a proactive approach to sustainable inclusive economic growth
secondly emphasis is on general functions or products and excludes specialized topics for example treasury asset liability management microfinance capital adequacy documentation and risk assessment of various products etc

specific near term objectives are as follows i to build formal linkages with various financial institutions end users regulatory and supervisory authorities and industry infrastructure institutions in order to bring practical relevance to the programs i to establish formal alliances with reputed business schools that could potentially add value and bring the best of global management practices and thinking into the curriculum i to bring on board a faculty of eminent intellectuals with research and teaching experience including those with credible islamic finance background
objectives basic all time objectives of the academy would be as follows i to design and deliver quality education training and research programs in islamic finance targeting a range of audience in various fields and professions i to ensure that the programs are inclusive comprehensive demand driven and with a strong technology orientation i to uphold the religious context of islamic finance with balanced emphasis on quality acceptability and affordability

adb ta pak improving access to financial services feasibility study a islamic finance component i to create and maintain a dynamic knowledge database on best practices industry issues sharia rulings financial market developments and stakeholders amongst others i to provide a vibrant research and training environment for innovation in islamic finance i to promote focused industry forums to discuss specific market developments and lobby for solutions i to organize seminars workshops and conferences to create awareness of islamic finance as well as for disseminating research findings

the second audience group would be business schools and related institutions where the focus would be to complement and strengthen their post graduate offerings executive management programs and research initiatives

the stakeholders are of the view that the challenge of human resource capacity building in islamic finance is significant and the magnitude of the task and the required speed to cater to this demand can only be effectively addressed through a dedicated initiative such as the proposed academy
formal industry linkages will be highly relevant towards quality curriculum development practical relevance of the offered programs acceptability of its offerings employment generation financial sustainability of the academy and most importantly for a structured consensus based approach towards expanding the scope of sharia compliant financial services to new sectors and segments including rural pakistan

demand driven offering given the pressing need for academic professional training and research initiatives the academy will develop its focus around three distinct centers of excellence i center for academic studies a offering international standard post graduate executive management and distance learning certified programs in islamic finance i center for professional training a offering short training programs to entry middle and senior level professionals i center for research innovation a promoting high quality innovative and entrepreneurial research including those with strong commercial application
the academy will ensure a comprehensive coverage to fulfill the needs of different levels of its target market ie foundation level up to post graduate and doctorate

the objective is to benefit from the learning and experiences of industry participants from other markets and to ensure that the offerings of the academy are tuned to the current and anticipated requirements of the industry

phil islamic banking finance riphah university rawalpindi i mba in islamic banking finance institute of management sciences peshawar i mba specialization in islamic banking finance qurtuba university peshawar i bba islamic banking finance the university of faisalabad i mba islamic banking gift university gujranwala i mba specialization in islamic banking finance
iifa s proposition to these business schools training providers would include providing access to quality curriculum educational and executive management programs knowledge base industry practitioners and prominent visiting faculty as well as facilitation of research progra miss the partner institution would be able to private label and customize programs developed by the academy delivered under its own brand using its own delivery infrastructure

the sharia council and the academic council will provide oversight and expertise to the sharia and academic considerations facilitate the convergence of various disciplines under study and ensure quality design and delivery of the progra miss the respective councils would comprise of eminent sharia scholars and academicians as well as representatives of the industry

the organization structure of the center for academic studies and center for professional training assumes a core team of professionals for each center by the end of first five years of operation
organization structure board of directors executive committee chief executive sharia council academic council officer director center director center director center director administrative for academic for professional for research marketing staff studies training development

the academy will also develop a broad panel of islamic financial institutions sharia advisors academicians bankers and professionals and engage their services on specific projects or progra miss in addition to the management team the academy will rely on the recommendations of focused industry groups and forums in domestic and international market
center for academic studies in phase i the center will comprise of three distinct offerings certification programs in specialist disciplines a post graduate program in islamic finance and executive management progra miss

after reviewing sbp s comments it would be pertinent to mention that the course material for each of the certification programs would be designed to address the same target market as inceif s certified program with additional domestic relevance
the proposed certification programs include i certified islamic banker i certified islamic accountant i certified islamic auditor i certified islamic risk analyst i certified islamic treasury professional i certified takaful professional

alliances the academy will establish formal collaborations with business schools offering them support for their islamic finance progra miss its value addition would be in the form of curriculum design access to faculty panel testing services facilitating linkages with industry stakeholders access to international industry resources and case studies and collaborative research programs amongst others

at the time of considering renewing formal relationship with the business schools the academy will be able to evaluate the credentials of the designated faculty as part of its quality assurance process
their islamic finance programs will gain credibility they would acquire added credentials will remain linked to new industry developments and will have continuous access to industry resources

adb ta pak improving access to financial services feasibility study a islamic finance component a host of on line services would be an integral part of the executive mba program to help participants in exchanging ideas and business information and in collecting and delivering course material

in line with feedback from stakeholders in the islamabad and karachi workshops specialized programs for islamic microfinance and dedicated programs for sharia scholars would also be developed by the academy to attract an under served niche market

center for research and innovation offering the defining feature of the centre would be promoting and facilitating high quality innovative and entrepreneurial research with a view to develop models and methods for application of sharia principles in the fields of banking and finance
duration it is planned that the center will offer these sessions several times each year in important business hubs across pakistan like karachi lahore and islamabad as well as in other key islamic centers including the gcc uk us and far east

the center would identify relevant issues in liaison with the industry commission research studies on project wise basis and build interest amongst the relevant stakeholders ensuring that the study meets the desired objectives
the center would advance its research objectives further in phase ii which would be initiated after five years through establishment of a comprehensive database of the research conducted by the academy with online access

adb ta pak improving access to financial services feasibility study a islamic finance component against the academy s internal strengths and weaknesses as well as external opportunities and threats developing the marketing strategy and monitoring and evaluating the strategy to ensure its continued relevance

marketing strategy marketing strategy of the academy has been developed with the objective of addressing the shortfalls identified under the study of current islamic finance training offerings in the local and international markets as suggested by sbp

i awareness campaigns to ensure maximum outreach across the country the offerings of the academy will be marketed aggressively through personal visits to institutional clients and hosting seminars and workshops for specific client groups and in various business cities of pakistan
adb ta pak improving access to financial services feasibility study a islamic finance component i membership program the academy will build up a formal network of partners including domestic and international stakeholders who will serve as an important medium to promote the academy s offering

it is expected that effective implementation of these strategies would firmly position the academy as the leading provider of innovative training research and education programs in islamic finance not only in the domestic industry but also in regional and key international markets
this will enable oncampus and remote constituents to participate in the academy s programs collaboration with partners undertaking multi dimensional and multi national research and providing administrative services to oncampus and off site participants

a second option is to build a new state of the art campus or buy an existing one to cater to the futuristic needs of the academy
at the same time it may consider entering into contractual arrangements with partner institutions like national institute of banking and finance nibaf institute of bankers pakistan ibp and pakistan institute of development economics pide etc

the administration office would be designed to service potential students and visitors affiliates and other partners and keeping in view the instructional support and operational functions of the academy
it will allow for a seamless integration of data voice and video technologies to create unique learning environment operating successful distance learning programs and actively building virtual networks of education and research communities

key features of the financial plan include i initial investment outlay of pkr million pkr million paid up capital and pkr million towards sponsorships of the three centers of excellence i the investment takes into account all financial requirements during the pre operating period and first five years of operations i the academy to be financially sustainable and commercially viable i it will employ a top rated lean management team at a premium to the market

investment plan the investment plan of the academy is developed after observing international market trends including a the waqf fund concept a special fund developed by the central bank of bahrain cbb for the promotion of islamic finance education in the region
in addition middle and senior management are also likely to pursue intermediate level and certification progra miss i center for academic studies is simulated to enroll around candidates for the executive mba program that would be launched in collaboration with domestic business schools in year

the investment plan takes into account the vision and key objectives of the academy its offerings working capital requirements and the need to ensure world class standard in the design and delivery of the curriculum
the initial sponsorship value is estimated as follows description sponsorship value pkr center for academic studies million center for professional training million center for research and innovation million final report page of

projected statement of affairs a center for academic studies pkr million x x x x x x revenues postgraduate program mba program certification programs one year executive management program weeks sponsorships total direct costs affiliation cost certification program direct cost executive management program direct cost final report page of

direct costs are those associated with the delivery of specific progra miss in case of the executive mba direct cost is estimated to be pc of the revenues and will be payable to the partner business school third party faculty

center for professional training projected statement of affairs a center for professional training pkr million x x x x x x revenue professional training sponsorships total direct costs professional training direct cost curriculum development cost total operating expense personnel cost surplus deficit
assuming a target market size of professionals training programs each over the projected period this represents a pc share of the market an achievable scenario

this works well for the academy as it will help bring quality programs that cost more and that are at par with international standards without pricing itself out of the domestic market
international pkr thousand cost assumptions x x x x x x training program direct costs of revenue final report page of

center for research innovation projected statement of affairs a center for research innovation pkr million x x x x x x revenue grant per annum direct costs direct cost of research curriculum development cost total operating expense personnel cost surplus deficit

adb ta pak improving access to financial services feasibility study a islamic finance component and traveling expenses is assumed to be two third of the grant value

based on the stakeholders feedback it is recommended that the implementation setting up of the academy should be led by the private sector on a built operate transfer bot basis under the overall supervision of sbp
next steps on the implementation were identified as follows i formal approval of this final report by mof sbp and adb i sbp to design and issue a formal request for proposal rfp to invite private sector to provide professional services to operationalize the academy

i deliberations of roundtable on microinsurance services in the informal economy the role of microfinance institutions hosted by international coalition international coalition on women and credit uncdf and ford foundationfinal report page of
adb ta pak improving access to financial services feasibility study a islamic finance component i barki husna bano and shah mehr the dynamics of microfinance expansion in lahore pakistan microfinance network islamabad and shorebank international ltd

the survey has to main islamic microfinance outline of products and services with standardized operating procedures and alternative strategies to pro large scale operation
adb ta pak improving access to financial services feasibility study a islamic finance component annexure terms of reference a national survey on islamic microfinance rationale for islamic mf survey

directing deposits of microfinance clients to islamic banks which at present cannot be leveraged in favor of m regulated nature the participants were informed that there was no other way than up gradation of mfis to islamic microfinanc final report page of
collaboration with islamic relief for microfinance the participants suggested that islamic relief pakistan and othe possessed a good microfinance experience and distribution network in different communities which would help forming some ki with them to promote islamic microfinance in pakistan

taking credit lines from world bank in case of pakistan poverty alleviation fund ppaf the representative of how the credit lines from wb could be obtained in islamic framework and if the concessional interest rate on these lines could b the discussion concluded that the present arrangement cannot be termed as islamic unless it is given free of charge from a so interest

but with squeezing cooperative system and closure of federal bank regulatory and refinancing institution for cooperative banks in the country kcb on the advice of the governor sbp decided to currently the bank is passing through transition stage and already started shifting to microfinance in a phased programme
islamic relief w microfinance projects identify and screen beneficiaries set out eligibility criteria encourage entrepreneurs to come forward wit investment and provide financial and social reports to hsbc amanah and over time develop commercially viable microfinance final report page of

the model suggests i providing capital to the fishermen to purc and set up small businesses ii organizing training and providing advisory service to the fishermen and iii promoting and enc fishermen

commercial banks intervention in islamic finance ferro highlights the increasing interest of western banks the microfinance as business prospect that could be achieved through diversification and integrating cultural and religious value microfinance he suggests commercial banks to step up for direct intervention in microfinance or intermediate through other inst sudanese experience in islamic microfinance although most of the mfis practice murabaha the sudanese islamic bank sib implemented musharaka financing to small farmers
the sudanese islamic bank sib faisal islamic bank of sudan fibs nelein indu group ndbg the agricultural bank of sudan abs farmers bank fb and the saving and social development bank ssd providing islamic financial services

adb ta pak improving access to financial services feasibility study a islamic finance component the concept of productive family defined in both social and economic ter miss the social structure includes the extended family o possess talent experience and will to pursue the economic activity for the purpose of providing goods and services to the local is employed in the business

since th applicant well known through the field survey is more important than the ability of the client to repay his debt thus no court ca cases are not related to the repayments of debts but to other social and marketing follow up factors
icdb is a private sector bank and finances through murabahah for duration of up to one year with a maximum grace p payment of murabahah price is paid in equal installments every month or every two months

in case of mudarabah the bank provides the entire funds while client pro and keeps record of expenses and income during currency of the project
the clients are required to have capacity to start and run the project efficiently and are credible honest and co provided on the basis of musharakah and mudarabah

downscaling of commercial banks emphasized in indonesia a survey report on microfinance institutions in indonesia details of twelve mfis including one islamic mfibaitul mal ta mil bmt a and concludes that mbt ranks st in recovery perfo delinquency ie less than pc and th in productivity reflecting strong confidence in islamic institution

islamic microfinance experience of islamic relief islamic relief uk has launched islamic microfinance programme islamic relief bosnia herzegovina created and registered a specialist microfinance organization called first islamic in early also has a separate microfinance organization called start created in

it was hoped that borrowers would be able to generate income and repay the loan not only from the sa yoghurt but also from selling one or more of the calves produced
this is a fixed fee and is charged regardless kosovo only finance for months duration is given and the administrative charge is euros

the results of the survey depicted that the clients were saving but were keeping at home the advantage of depositing in a bank
islamic microfinance experience in pakistan the visible examples of islamic microfinance in paki islamic relief pakistan irp rawalpindi islamabad akhuat lahore rawalpindi faisalabad karako in chilas skardu and muslim aid islamabad chakwal

they contacted darul uloom deob the bank of khyber islamic banking division and other prominent scholars of nwfp
perception of nrsp towards islamic microfinance nrsp started its islamic micro finance program in in mar first disbursement was made on th dec

the health insurance scheme covers services provided to clients up to three government hospital and include casualty and in out patient services consultation with doctors general medical practitioner ap investigations such as x rays ultrasounds and cardiograms drugs prescribed by the hospital hospital stays for up to three we coverage simple dental coverage and optical consultation
roundtable for micro insurance services hosted b women and credit uncdf and ford foundation has emphasized the need for proactive rather reactive risk management app mitigation through diversification of income sources savings insurance schemes and risk reduction through investing in infrast education and health progra miss sewa in india provides an integrated insurance scheme covering sickness death widowhood flood fire and riots

of loan amount to be paid at branch at the time of loan disbursement or to the team leader of the loan grou same day or the day after a client s death
nrsp offers a combination of health accidental death and disability insurance to their clients in cooperation with a nrsp apex body for local community organizations negotiated the service involving one time purchase of policies at which it would resell to final users

the compensations are paid according to the value of the asset worked out on the basis of bank financing and equ ii
the sharia scholars may decide if a part of the profits is to be paid to the policy holders

some of the members who cannot afford the premiums are sponsored by local villager of the main difficulties the fund could face is the possibility of the government withdrawing from subsidization of health costs
an institution microtakaful was being established which would offer benefits to mfis for securing its revolvi secure the payment to the mfi in case of disability and death as well as additional benefit for the family of deceased

if the seller does not disclose each time to the buyer the price of the subject matter but the contractors know that it is b and the market value is specified and determined in such a manner that there is no possibility of change in it or it does contractors the sale stands valid every time purchaser takes possession of the goods

mode islamic microfinance counters at existing branches separate counters offering islamic microfinance products m branches and it should be prominently displayed in the premises that islamic microfinance products are being offered in the bra mode iistandalone islamic microfinance branches mobile banking similar to the license for new branch for banking open microfinance branches as per procedure prescribed in smeda circular no
the company granted license to operate as islamic mfb shall comply with the provisions of microfinance institutions o rules prudential regulations framed under it and sbp directives issued from time to time

the eligibility of an mfb to offer islamic microfinance services shall be considered by the state bank keeping in mind t mfb as evident from its capital base the adequacy of its capital structure its earnings record future earning prospects of the liquidity position track record of the mfb s adherence to prudential and other regulations credit discipline quality of customer s experienced and trained key staff to handle the islamic microfinance operations
adb ta pak improving access to financial services feasibility study a islamic finance component mode iiiestablishing independent imfbs as subsidiaries of banks the islamic bank s interested in sponsoring an isl may apply to sbp for issuance of a license to establish the islamic microfinance bank under mfis ordinance

show card i like it this is what i expect the financial service to be i do not feel anything it does not matter to me all financial services are like this there is no other choice i do not like this i like it means that it is a service that is not available and it is something you would like to have
statements code how do you feel if there is an islamic bank branch near your village how do you feel if there is no islamic bank branch near your village how do you feel if the bank deals according to sharia final report page of

how do you feel if the islamic financial institutions deal with you with respect how do you feel if the islamic financial institutions does not deal with you with respect how do you feel if the islamic financial institution offers you a safe way to send money how do you feel if the islamic financial institution does not offer you a safe way to send money how do you feel if the islamic financial institution offers you products with a fixed interest rate how do you feel if the islamic financial institution does not offer you products with a fixed interest rate how do you feel if the financial service is flexible with islamic final report page of

please circle the nearest code or write in t column for others the difference is that conventional banking involves ribba islamic financ products do not have ribba or interest final report page of

the faculty for phd and cifp program at inceif is as follows i mohd firdaus kader i member uk institute of chartered mohideen secretaries and administrator icsa details of all the programs courses offered are mentioned in the end of each section
research grants are intended to support well defined research projects enabling researchers to collaborate with and bring benefits to other individuals and organizations

doctor malik muhammad i phd in monetary economics and mahmud al awan international finance clark usa i prof

the members are i tan sri dato sri doctor zeti akhtar aziz governor bank negara malaysia chairman i tan sri datuk amar haji bujang board member bank negara mohd nor malaysia i dato mohd razif abdul kadir deputy governor bank negara malaysia governing council the governing council is empowered by the board to advice on strategic directions and provides visionary global insights on the learning needs of the islamic financial services industry with the aim of transcending the needs of the industry both domestically and internationally
doctor rifaat ahmed abdel secretary general islamic financial karim services board ifsb malaysia i datuk zamani abdul ghani deputy governor bank negara malaysia i datuk khatijah ahmad executive chairman kaf group malaysia i yusuf talal delorenzo president malfa usa i tan sri dato azman hashim chairman ambank group malaysia i prof

razif abdul kadir deputy governor bank negara malaysia i doctor munawar iqbal head of department iiui pakistan chief of research islamic banking and finance division irti i mister abdul rahim abdul hamid president malaysia institute of accountants i doctor nik ramlah nik mahmood senior executive director strategy and development division securities commission malaysia i dato abdul manap abdul ceo bank muamalat malaysia bhd wahab malaysia i dato prof
doctor volker nienhaus president phillips university marburg germany i datuk sri panglima andrew board member qatar financial sheng centre regulatory authority qatar i tan sri dato doctor syed jalaludin chairman bank kerjasama rakyat syed salim malaysia bhd malaysia i doctor ishrat husain former governor sbp pakistan professional development panel pdp pdp acts as the senate and standard setting body and is the highest authority on academic affairs at inceif

other facilities available are i wired and wireless internet facilities i discussion area i reading area i workstations i listening room i access to online publications emerald management xtra science direct economics and business journals financial market trends oecd periodical reuters xtra and islamic finance news i packages of econometrics software marketing plans inceif is in the news through press releases as well as participating and sponsoring various promotional events

admission requirement the minimum academic requirement for the cifp program is a recognized bachelor s degree or an equivalent professional qualification

the selected areas of specialization are i fiqh muamalat i legal aspect of islamic financial institutions i performance and efficiency of islamic financial institutions i economics policy and analysis of islamic financial institutions i accounting for islamic financial institutions final report page of

mission the mission of bibf is to i deliver business and knowledge transfer solutions with utmost professionalism quality and value i maintain proactive business partnerships with the clients to achieve successful results for both their organizations and the individuals within i expand the business scope of the institute and sustain bibf s competitive differentiation through continuous innovation and improvement of products services and resources a human technological and physical unique selling point usp a complete institute solely focusing on banking and finance activities all across the world through strategic alliances with various institutes
bibf offers a range of courses through the following centers i banking learning center i professional qualification learning center i insurance learning center i islamic finance learning center i leadership and management learning center i academic executive learning center vision the vision of bibf is pursuit of excellence through lifelong learning

drawing on the assistance of an islamic banking consultative committee of ceos and general managers of regional islamic banks representatives of the general council for islamic banks aaoifi and the central bank of bahrain the center has gained access to industry experts worldwide to ensure that its seminars and workshops are relevant contemporary and practical

these courses can be held during mornings afternoons evenings or on weekends in order to accommodate the operational constraints of the organization

examination center for professional organizations bibf has established linkages with several professional organizations and is an official examination center for i the ifs school of finance incorporated by royal charter uk i the chartered insurance institute cii uk i the chartered institute for management accountants cima uk i international capital market association icma i the chartered association of certified accountants acca uk i the aci institute ltd aci uk i financial risk manager frm faculty the bibf has two islamic finance in house lecturers presently and invite external instructors and guest speakers from local and international community
adb ta pak improving access to financial services feasibility study a islamic finance component islamic advisory services the islamic finance learning center has access to a vast pool of knowledge within the center and from its links with the industry

stren schools of business new york university usa i bsc system engineering university of petroleum mineral saudi arabia i hussain ismail i executive management program columbia deputy director head of the university usa banking learning center i mba university of durham uk i graduate program for executives carnegie mellon university usa i fellow member of the chartered institute of bankers fcib uk

adb ta pak improving access to financial services feasibility study a islamic finance component learning center administration university of virginia usa head of the professional i acii qualifications learning i bsc insurance and real estate arkansas center state university usa i darshan singh i ba hons economics lancaster university head of the leadership uk

details of islamic finance related programs offered masters of science a islamic finance english the master of scienceislamic finance program provides an opportunity for highly motivated students to develop the dual knowledge and skills base necessary to understand modern conventional and islamic financial markets instruments and decision making
in addition it also advertises in magazines conferences and newspapers based on the select target market for its courses and progra miss bibf also markets its plans through various advertisements posted on the website

these are given below finance courses i economics for decision making i financial management i investment analysis i financial statement analysis i commercial banking i derivatives and risk management i advanced derivatives and risk management islamic finance courses i islamic economics jurisprudence and ethics i accounting auditing and governance for islamic financial institutions i islamic commercial banking i islamic investment banking i islamic treasury capital markets and risk management target market the program is structured to develop financial management professionals
if gmat is not taken by time of application a depaul math test is administered at bibf to accompany the application but a gmat score is required before the end of the program

fee structure the fee structure is as follows i application fee bd i late application fee bd i tuition fee payable in three installments bd evaluation system each course offered would have a separate evaluation system diploma in islamic accounting and compliance english the diploma in islamic accounting and compliance diac is a professional certification jointly developed and certified by the bahrain institute of banking and finance bibf and the association of international accountants aia a premier international professional accountancy body
adb ta pak improving access to financial services feasibility study a islamic finance component i at least reference letter from employer and or professor in english language

adb ta pak improving access to financial services feasibility study a islamic finance component the diploma comprises of modules which are as follows i islamic commercial law i islamic banking practice i islamic accounting standards i auditing ethics and corporate governance target market the diploma has been specifically designed to cater to the needs of global professionals who require a qualification that enhances and certifies their knowledge and practical understanding of the multi jurisdictional accounting systems that islamic banks are exposed to
fee structure the program fee structure is as follows i preparatory course tutorial fees per module payable to bibf bd i study manual per module payable to bibf bd i exam fees per module payable to aia directly gbp i registration fee one off payment directly to aia gbp evaluation system each module of the program has a three hour closed book written paper per topic

applicants who have completed or who are exempt from the business english certificate level offered at bibf can enroll in the diploma program i prior knowledge of commerce banking and finance either with a banking or finance operations management experience of up to five years or b a business commerce banking or finance degree from a recognized university

evaluation system for each module of the program a participant is required to i attend in class hours complete the required written assignments quizzes and pass the final exam i ensure a minimum attendance of in order to appear in the mid term and final examinations failure to sit the mid term examination will result in a participant requiring a minimum of of the remaining available marks in order to achieve a pass i achieve a minimum mark of to pass each module which may also have specific requirements that need to be met in order to gain credit for the module
course content sources of legislation i modes of trade i types of riba i jehala and gharar i types of contracts basic sharia rules and application of i murabaha contract i tawarraq contract i salam contract final report page of

adb ta pak improving access to financial services feasibility study a islamic finance component i guidelines for mutual funds in united states i dow jones islamic index i types of islamic mutual funds i selecting the right investment i risk measures for mutual funds i legal framework in the gcc region target market the objective of this course is to provide participants with a thorough knowledge of islamic mutual funds covering key aspects such as legal structure appropriate contracts and documentation and technical risk analysis
proficiency in english is required when the course is offered in english and similarly proficiency in arabic is required when the course is offered in arabic

i sukuk tradability i growth and changing character of the sukuk market i sukuk in the context of corporate financing choices i positive and negative aspects of sukuk to issuers and investors i potential impact of new basel capital guidelines on sukuk i accounting regulatory and tax aspects i legal issues in sukuk structuring i islamic banks and the potential of sukuk in balance sheet management i role of sukuk in convergence and capital market development i counterparties in sukuk and their roles i sukuk rating methodology and the role of the rating agencies
i modeling a sukuk i operational issues post sukuk issuance i listing sukuk a why do it i credit enhancements in sukuk i sukuk backed by services activities intangible assets i sukuk pricing i domestic or international sukuk final report page of

adb ta pak improving access to financial services feasibility study a islamic finance component liquidity management risk mitigation capital adequacy this course will strengthen an understanding about the type and nature of inherent in house products structure and process of risk management function evaluation of liquidity market and foreign exchange risks and their implications for islamic banks and risk management tools such as var capital adequacy regulation

upon completion of this course participants will understand the legal implication of islamic contracts understand the importance of jurisdiction and governing law clauses be able to draft effective dispute resolution clauses be aware of methods of enforcement or islamic debt appreciate the difficulties involved in enforcement across geographical zones and know how to minimize those difficulties be able to plan ahead to ensure that they get enforceable decisions that enable debts to be recovered
adb ta pak improving access to financial services feasibility study a islamic finance component target market i bankers and financers exposed to project finance i treasurers and finance directors managers i credit and marketing team members i key personnel from oil gas and infrastructure sectors i risk managers i corporate bankers admission requirements this course does not have any prerequisites except for proficiency in english

fee structure member institutions i gcc nationals covered by levy bd i other nationalities bd non member institutions final report page of

islamic research and training institute introduction islamic research and training institute irti a member of the islamic development bank idb was established in to undertake research and provide training and information services to the member countries of idb and muslim communities in nonmember countries to help bring their economic financial and banking activities into conformity with sharia and to further economic development and cooperation amongst them

training activities are conducted in arabic english french and russian for commonwealth of independent states and are mainly organized under following four broad themes i islamic economics banking i private sector i human resources management i macroeconomics some of the islamic finance related courses offered are i investment funds compatible with sharia arabic i sharia rules governing banking operations and their applications in operations english i islamic banking operations arabic i securitization and its application in islamic banks arabic final report page of

research objectives of the division are i establish a policy dialogue network and partnership for developing islamic financial industry by establishing a working group i focus on research for enhancing islamic finance as a discipline as well as development of islamic financial infrastructure and products and strengthening capacities in risk management regulation and supervision i develop a comprehensive database of statistical information related to the industry i utilize research in facilitating human resource development publications irti publishes books on different topics in three languages arabic french and english
other services information services a to provide required information services the institute has evolved a number of information systems these include islamic banks information system ibis idb database on experts idbde trade information promotion final report page of

adb ta pak improving access to financial services feasibility study a islamic finance component system tipsys guideline for a national it strategy awqaf databank irti publications management system and irti newsletter scholarships a grants scholarship to students working for the phd degree in some recognized university and those who are desirous to prepare their phd thesis in the areas of islamic economics banking and finance faculty the faculty at irti is mainly visiting faculty
khursheed ahmed i doctor abdurrahman yousri i doctor habib ahmed ncb jeddah saudi arabia i doctor sami al suwailem i doctor parviz aghili researcher central bank of iran i doctor tariqullah khan i mister anwar soubra imam ouzai university beirut i doctor dawood manzoor assistant professor isu i mister dawood taylor al jazirah bank jeddah saudi arabia organizational structure board of governors each member country is represented on the board by a governor and an alternate governor

the board of executive directors is responsible for the following general operations of the bank i prepare the work of the board of governors i take decisions concerning the bank s business and its operation in conformity with the general directions of the board of governors i submit the annual accounts for approval of the board of governors i approve the bank s budget name countries represented i hon
adb ta pak improving access to financial services feasibility study a islamic finance component board of executive directors the board of executive directors is headed by the chairman h

mission the mission of difx academy is as follows i to provide quality financial education in a learning environment that supports professional and personal excellence i to promote a culture of appreciation of intellectual and ethical values i to accentuate professionalism in the financial industry unique selling point usp the unique selling point for difx academy is that it is a training academy established by difx an international financial exchange

training programs are conducted in the following fields i capital markets i islamic banking and finance i banking and finance i investment and treasury management i risk management i corporate governance the difx academy in association with international educational institutes provides a range of certifications and qualifications

adb ta pak improving access to financial services feasibility study a islamic finance component the in house faculty at difx academy is as follows i doctor hatim al tahir i fcib head of training i fsi i phd in finance from university of london uk i research associate at london school of economics uk organizational structure not available administrative facilities the difx academy conducts its training in house as well as leading hotels located around the difc
course content an introduction to islam and islamic banking finance i principles and concepts which underpin islam i placing of banking and finance within islam final report page of

course content introducing the set of financial statements an islamic bank needs to have i statement of financial position i income statement i statement of changes in equity of restricted investment account holders i general disclosure requirements in the financial reporting of islamic banks
i case study set of financial statements of kfh bahrain the mudaraba investment accounts fixed deposit and profit distributions accounting i the profit sharing concept and fixed deposits

i valuation and presentation of istisna a assets in the statement of financial position
i valuation and presentation of musharaka assets in the statement of financial position

renamed loughborough university in the university now has more than full time students departments and over research centers and institutes within three faculties the faculty of engineering the faculty of science and the faculty of social sciences and humanities

adb ta pak improving access to financial services feasibility study a islamic finance component i miss karligash kenjegalieva i doctor lawrence leger i doctor hailin liao i professor david llewellyn i mister peter maunder i professor terence mills i professor eric pentecost i doctor claudio piga i professor joanna poyago theotoky i doctor christian richter i doctor richard simper i doctor paul turner i professor tom weyman jones organizational structure the most senior staff at the university is its officers

marketing plans not available details of islamic finance related programs offered msc in islamic economics banking and finance the course aims to provide a firm knowledge of the working of the islamic economic system with particular emphasis on the theory and practice of islamic banking and finance

evaluation system assessment for the taught modules is by coursework essay class test or other assignment and a two hour formal examination with the exception of the module financial market trading

iiui offers different graduate undergraduate and phds through the following departments i department of arabic language islamic civilization i department of language literature humanities i department of management sciences i department of social sciences i department of sharia law i department of engineering technology i department of basic applied sciences i department of islamic studies i international institute of islamic economics collaborations the iiui has academic collaborations with the following universities final report page of
international islamic university islamabad introduction the international islamic university islamabad iiui was established in and began its classes as an islamic university with only students in its ll

adb ta pak improving access to financial services feasibility study a islamic finance componet i study and interpret the teachings of islam in the context of intellectual and scientific progress of the modern world i encourage education training and research in different areas of learning such as social natural applied and communication sciences with special emphasis on islamic learning unique selling point usp iiui is a university with particular focus on islamic education in pakistan international institute of islamic economics international institute of islamic economics iiie is the centre for islamic economics and banking at iiui

faculty the faculty at iiie is as follows i doctor nasim shah shirazi professor director iiie i doctor asad zamman professor i doctor munawar iqbal professor chairperson soibf i doctor sayyid tahir professor i doctor razzaq hamza bhatti professor i doctor pervez zamurrad janjua foreign professor i dr faiz bilquees senior professor i doctor abdul jabbar asst
adb ta pak improving access to financial services feasibility study a islamic finance componet allied disciplines through seminars colloquia conferences staff and students exchange scholarships stipends and bursaries offering different programs offered at iiie include i ms economics i msc economics i msc economics finance i ms islamic banking finance i bsc hons

adb ta pak improving access to financial services feasibility study a islamic finance componet i mister faiz ur rahim lecturer i mister atif waheed lecturer i mister nauman ejaz lecturer i mister zahid mehmood lecturer i mister shabir ahmad lecturer i mister husnul amin lecturer i mister arshad ali bhatti lecturer i doctor manzoor ahmed lecturer i mister malik muhammad lecturer i mister saqib manzoor lecturer i mister jawad ahmad azeez lecturer i mister muhammad akram lecturer i mister abdul rasheed lecturer i mister javed anwar lecturer organizational structure the supreme authority of the university vests in the board of trustees
the execution of the policies laid down by the board of trustees is the responsibility of board of governors

adb ta pak improving access to financial services feasibility study a islamic finance componet library university maintains six well equipped libraries in all fields of islamic studies

details of islamic finance related courses offered the courses briefed are islamic finance related courses only msc in islamic banking finance the objective of the program is to prepare experts in the discipline well acquainted with conventional banking operations as well as sharia injunctions

alternately the student is required to join internship with a financial institution for a period of three to four months and submit a report to the department which is evaluated by a committee of examiners

fee structure not available evaluation system not available post graduate diploma pgd in islamic banking finance the diploma also aims to fulfill the demand for islamic finance professionals

centre for islamic economics introduction centre for islamic economics cie a division of jamia darul uloom karachi was founded on august within premises of masjid e baitul mukarram

adb ta pak improving access to financial services feasibility study a islamic finance componet vision the vision of cie is to serve as a dynamic platform for the overall business financial social and economic environment conducive for practical implementation of the sharia guidelines

faculty faculty members of cie are listed below i maulana aziz ur rehman alamiyaah takhassus fil ifta i maulana mehmood ashraf alamiyaah takhassus fil ifta i maulana doctor zubair ashraf phd islamic finance usmani i maulana doctor imran ashraf usmani phd islamic finance i maulana mohammad yahya asim ma international relations islamic studies i maulana mohammad badar alam ma islamic studies i maulana ismatullah ma islamic studies i maulana hussain ahmed ma islamic studies i maulana mohammad zakaria ma islamic studies iqbal i maulana mohammad najeeb alamiyaah takhassus fil ifta final report page of
the teachings in the course titled a ulemas awareness of modern needs and issues in the society resulted in the compilation of a book a islam aur jadeed maeeshat otijarat which is equally popular amongst ulema and economics financial experts and is a part of curriculum of many religious schools

adb ta pak improving access to financial services feasibility study a islamic finance componet i islamic law of contract i liability side operations of an islamic bank i risk management islamic insurance semester i islamic financial contracts aaoifi standards a part ii i sharia audit compliance and supervision i asset side operations of an islamic bank i advance topics in islamic banking target market the diploma targets male graduates who want to enhance or pursue a career in any field of islamic banking and finance or takaful
certificate course on islamic banking finance course content session i sources of islamic sharia i comparison of islamic economic system with socialism capitalism i islamic banking background global scenario i ethics of business in the light of quran sunnah final report page of

mission the mission of alhuda cibe is to provide i quality products that meet the required standards and offer competitive pricing and strict regulatory compliance i services that strictly adhere to principles of sharia and are carefully designed reviewed approved and monitored by highly respected sharia scholars unique selling point usp final report page of
alhuda cibe is also working with international institutions including iifm bahrain business lifestyle london globalpro malaysia michel gessner consultancy uk iir me uae nexxus london uk avail corporation singapore marcus event malaysia terrapinn worldwide and secp pakistan as partner for developing training awareness of islamic banking worldwide

adb ta pak improving access to financial services feasibility study a islamic finance componet the usp for alhuda cibe is that it focuses on providing islamic finance training in different cities and towns across pakistan and also offers advisory services

the regular features of the magazine are i national and international news on islamic banking finance and takaful i round table discussions islamic financial product reviews i articles and research related material on the subject final report page of

zubair mughal i mba msc in mass communication chief executive officer i five year experience in a national newspaper as executive editor and member of council of pakistan newspaper editors cpne i year research experience on islamic banking and related issues hamad rasool i fcma fpa fcis dcma pgdacas director research i director first credit and investment bank i director wapda first second sukuk co

zia head of research training lahore stock exchange i doctor karamat ullah director research minhaj university i muhammad asad head of islamic banking division the bank of khyber i rizwan ata regional manager meezan bank limited i mujeeb baig head of product development research first dawood islamic bank limited i sohail yaqoob head of marketing al meezan investment management limited i mufti muhammad sharia advisor abn amro bank iftikhar baig i tanweer haral national sales manager arif habib investments ltd organizational structure alhuda cibe is managed by seasoned professionals with expertise in various segments of the islamic financial services industry
jamil akhtar ceo takaful pakistan limited khan i shoaib soofi director actuary ministry of finance government of pakistan i muhammad azeem head of marketing pak qatar family takaful pirani limited i doctor shahid a

adb ta pak improving access to financial services feasibility study a islamic finance componet while that for the remaining semesters is emailed to the candidates

islamic banking takaful course content module i fundamentals of islamic banking i basics of islamic banking finance i product mechanism of islamic banking ijara murabaha i understanding the key concepts of ijara murabaha with practical issues final report page of
fee structure fee for international participants fee for pakistani indian iranian bangladeshi candidates pkr fee includes teaching material audio and video presentations on ppt pdf format postal charges and research material evaluation system students are required to successfully complete an average of hours each week for months for studying and submitting of assignments

offering core offerings of nibaf are as follows i designing and development of training modules programs i preparation and publication of training material i domestic and international training programs i evaluation of training programs i business planning and review i support for training programs seminars and workshops final report page of

adb ta pak improving access to financial services feasibility study a islamic finance componet the training programs offered by nibaf are i international courses i international central banking courses i international commercial banking courses i certificate courses i islamic banking i microfinance i sbp courses i customized programs faculty not available organizational structure the nibaf board of directors headed by the governor of the sbp provides policy guidelines general direction and superintendence to the management
the managing director is the chief executive who provides strategic guidance and ensures implementation of the board s policies and is assisted by a team of specialists in the fields of economics banking and management on the academic side

adb ta pak improving access to financial services feasibility study a islamic finance componet details of islamic finance related programs offered islamic banking certificate course the islamic banking certificate course is classified as an intermediate to advance level course on islamic banking

this unique feature ensures concurrent improvement development and upgrading of facilities and services as per the expectations and needs of the stakeholders which are detailed below institutional members sbp sbp banking services corporation commercial banks development financial institutions dfis specialized institutions leasing and other non banking finance institution nbfis are institutional members and owners of the institute
adb ta pak improving access to financial services feasibility study a islamic finance componet the mission of ibp is to train and develop a sound human resource base for the financial sector and to work for continuous learning adaptation and application of knowledge

during the year ibp conducted the following islamic banking courses i certificate course on islamic banking i day course on murabaha and ijara for dubai islamic bank pakistan dibp executives conducted by doctor mabid ali al jarhi financial expert a structuring coordination department emirates islamic bank dubai i day course on istisna musharaka for dibp executives conducted by doctor mohd daud bakar president ceo international institute of islamic finance kuala lumpur malaysia i day course on murabaha and ijara for dibpl employees conducted in rawalpindi one course is offered each month on islamic banking related topic
partner in recruitment promotion ibp is presently operating as a strategic partner in recruitment and promotion process for the following banks i state bank of pakistan i national bank of pakistan i habib bank limited i united bank limited final report page of

adb ta pak improving access to financial services feasibility study a islamic finance componet i mcb bank limited i allied bank limited i the bank of punjab i first women bank limited i meezan bank limited i saudi pak commercial bank limited i zarai taraqiati bank limited i soneri bank limited i the bank of khyber i crescent commercial bank limited i securities and exchange commission of pakistan research and publications books and monographs ibp is actively engaged in publishing and printing books on critical aspects of banking and finance
hard copies of the letter are sent to the heads of ibp institutional members and soft copies are sent to a wide range of stakeholders through email

adb ta pak improving access to financial services feasibility study a islamic finance componet include developing operational manuals guidelines reports and presentations covering all banking related subjects including risk management anti money laundering corporate governance lending operations sme finance microfinance and all the other products and services of financial services sector

the chief executives of major local and foreign commercial banks are members of the council and are elected by the ibp members for a three years term

accounting and auditing organization for islamic financial institutions introduction accounting and auditing organization for islamic financial institutions aaoifi formerly known as financial accounting organization for islamic banks and financial institutions was established in accordance with the agreement of association which was signed by islamic financial institutions on february in algiers

coordinating and cooperating with relevant organizations currently setting standards for the stability and the soundness of the international monetary and financial systems and those of the member countries
ifsb has members including regulatory and supervisory authorities as well as international monetary fund world bank bank for international settlements islamic development bank asian development bank and market players and professional firms from countries

establishing a database of islamic banks financial institutions and industry experts role ifsb promotes the development of prudent and transparent islamic financial services industry through introducing new or adapting existing international standards consistent with islamic sharia principles and recommend them for adoption
to this end the work of the ifsb complements that of the basel committee on banking supervision international organization of securities commissions and the international association of insurance supervisors

acting as a market body in the development and maintenance of uniformity assisting with standards benchmarking for transparency and robustness of islamic financial markets role iifm is an infrastructure institution with the mandate to take part in the establishment development and promotion of islamic capital and money markets
international islamic financial market introduction the international islamic financial market iifm is an international infrastructure institution for promoting islamic capital and money markets

encouraging the introduction of standards for greater disclosure and transparency role iira is the sole rating agency established to provide capital markets and the banking sector in predominantly islamic countries with a rating spectrum with full array of capital instruments and specialty islamic financial products
providing independent assessment and opinion on the likelihood of timely payment of financial obligations by sovereigns corporate banks and financial institutions and securities issued by governments corporate banks and financial institutions

providing various forms of development assistance targeting different sectors of the member countries economies role the purpose of the idb is to foster economic development and social progress of its member countries and muslim communities in non member countries individually as well as jointly in accordance with the principles of sharia
the basic condition for membership is that the prospective member country should be a member of the organization of the islamic conference pay its contribution to the capital of idb and be willing to accept such terms and conditions as may be decided upon by the idb board of governors

full fledged islamic microfinance banks imfbs islamic banks will have to follow the criteria given as under i financial transactions undertaken by mfbs must comply with the injunctions of sharia i an mfb will have to appoint a sharia advisor which should satisfy the a fit and proper criteria for sharia advisors issued vide ibd circular of
mode islamic microfinance counters at existing branches separate counters offering islamic microfinance products may be opened in the existing branches and it should be prominently displayed in the premises that islamic microfinance products are being offered in the branch

islamic microfinance services by conventional microfinance banks the eligibility of an mfb to offer islamic microfinance services shall be considered by the state bank keeping in mind the financial strength of the mfb as evident from its capital base the adequacy of its capital structure its earnings record future earning prospects of the mfb managerial capabilities liquidity position track record of the mfb s adherence to prudential and other regulations credit discipline quality of customer services and availability of experienced and trained key staff to handle the islamic microfinance operations
they can offer islamic microfinance services through the same modes as above ie a microfinance counters at existing branches b standalone islamic microfinance branches mobile banking c establishing independent islamic mfbs as subsidiaries of conventional banks d developing linkages with islamic mfbs mfis

what mode of finance fixed rate mode would you prefer business risk sharing when profits are shared but you will share the loss only if sustained due to your negligence business risk sharing when profits and losses are shared rent mode in case of fixed assets public transport vehicles equipment and machines what will be your facility to be availed individually preference of status as facility to be availed individually but as member of the beneficiary of group credit financial facility facility to be availed jointly as member of the group what type of security personal surety final report page of

bottom up approach to curriculum the iifa plans to undertake a bottom up approach for curriculum development development starting off with foundation level courses graduating to more advance ones in the course of time cross sector hands on training many participants felt that the quality of program should focus on and employment encouragement practical training and education progra miss it was further highlighted that most of the existing programs being offered by other institutes are largely academic and theoretical in nature
adb ta pak improving access to financial services feasibility study a islamic finance component key comments and conclusions of the islamabad workshop feedback comments of key participants and its responses recommendations comment response discussion why not have the international karachi has the largest concentration of financial institutions and islamic finance academy iifa at is considered to be the financial hub of pakistan

provision of recruitment of islamic the proposed academy should seek to collaborate with various microfinance internees financial and corporate institutions including microfinance banks and institutes for employment of the professionals who obtain training certification from the academy and should also encourage mto programs meeting with persons identified by it was suggested that for the purpose of the feasibility study the the participants to get more inputs team should consult with universities and colleges specifically on establishment of academy the dean of international islamic university and seek their input with regards to the curriculum and focus of the academy
how will iifa reach out to the rural it was suggested that the academy should explore various areas modalities to reach out to rural areas including through distance learning and other technology

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AlHuda Material\islamic banking

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islamic finance microfinance muslim services report access feasibility improving development international adb pak research islam university component social financial pakistan

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2010-01-06 11:29:25

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ADB report on Islamic Finance in Pakistan

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