Conversion

of

STATE BANK REQUIREMENTS

Islamic Banking Divisions duly allowed by SBP CAMELS-S rating of at least Fair (3) in the last On -Site report Conversion requests to Banking Policy & Regulations Department of SBP Submission of Annual Branch Expansion Plan (ABEP) Duly approved by their respective Shariah Advisors to SBP Acceptance from existing Customers Transfer of customer a/c to other branches Conformity with each Shariah regulation Segregation of Conventional fund & Islamic funds

LICENCING

Upon completion of all requirements in light of conversion plan

and in-principle approval, the bank shall apply for license for
Islamic banking branch(es), submitting Shari'ah Advisors Certificate confirming that the whole conversion process has been undertaken in conformity with Shari'ah and surrendering the existing license of conventional branch(es)

MAIN CHANGES

From interest to Profit & Loss sharing

No future or forward transactions No calculation using time value of money From MMM to MCM Only Shari'ah complaint or based tools and products Deals in Assets rather than money advancing No provision for fixed return No current account but Loan Accounts

MAIN CHANGES

Investment in only approved companies Compulsion of risk involvement Possession and transfer of goods/assets Risk for both parties i.e. Bank an Customer Any penalties or fines charged to customer go to welfare unless otherwise agreed by Shari'ah

THANK YOU

Questions