Professional Documents
Culture Documents
2.0
The Organization of Islamic Conference (OIC) defines Islamic Bank as a financial institution
whose statutes, rules and procedures expressly state its commitment to the principles of
Islamic Shariaah and to the banning of the receipt and payment of interest in any of its
operation.
Bangladesh Bank defines Islamic Banking as a banking company or an Islamic banking
branch (es) of a banking company licensed by Bangladesh Bank, which follows the Islamic
Shariah in all its principles and modes of operations and avoids receiving and paying of
interest at all levels.
Islamic Banking aims not to earn mere profit but to ensure welfare and distributable justice
to the people. Islamic banks makes best endeavor to eliminate disparity and establish justice
in the economy, trade, commerce and industry, build socio economic infrastructure and
create employment opportunities.
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2.1
Interest is the pre-agreed additional amount of money which is paid against principal mainly
for time period without exchange of any commodity or service between the lender and the
borrower. Money here is treated as commodity which is completely against the objective of
creation of money. The factors determining interest is amount of loan time period and rate of
interest. In case of transactions on interest, the principal is guaranteed to remain intact, thus
the lender doesnt take risk of loss of capital. The interest is to be borne only by the
borrower. Sometimes interest is paid or earned both on principal and interest (compounding
interest). Since rate of Interest and time for repayment of principal and interest is
predetermined, lender does not bear any risk.
On the contrary, profit is the amount earned by deploying capital into a business. It may be
earned by way of trading of goods and services or by partnering a business. The factors
determining profit is business condition, demand and supply situation, efforts given on the
business etc. Both buyer and seller or parties involved in business bear the risk. The
principal is not guaranteed. Loss, if any, is borne by the capital provider(s). The profit is
distributed among the capital providers and the parties managing the business. In case of
buying and selling, profit cannot be increased only for time periods, once the price is fixed.
Profit can be earned only once in case of single trade.
However, fixed percentage does not necessarily constitute interest. In case of buying and
selling fixing a percentage of profit is permissible. But fixing an assured return before getting
any result from investment is interest.
2.2
Operates in line with Shariah principles and for the welfare of the people.
Complete avoidance of interest in all its activities
Doesnt invest only for profit, but looks into need of the society.
Ensures fairness and justice in all sorts of transactions.
Ensures optimum utilization of resources and help to fulfill justified needs of all.
Helps develop the standards of living of the poor.
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Direct participation with trade and commerce through involvement of real assets
1960s
1970s
1980s
1990s
. Mit Ghamr
. Nasser
. Al-Baraka
. Accounting
Local Savings
Bank, Egypt
(1963)
. Lembaga
Tabung Haji,
Malaysia
(1963)
Social Bank,
Egypt (1971)
. Islamic
Development
Bank, Jeddah
(1975)
. Dubai
Islamic Bank,
Dubai (1975)
. Faisal
Islamic Bank,
Sudan (1977)
. Bahrain
Islamic Bank,
Bahrain
(1979)
(1982)
. Islami Bank
Bangladesh
Ltd, first
Islamic bank
in South-East
Asia (1983)
. Qatar
Islamic Bank
(1983)
. Dar al Maal
Islamic Trust,
Geneva
(1984)
and Auditing
Organization
for Islamic
Financial
Institutions
(AAOIFI),
Bahrain
(1991)
. Islamic
Bank of
Brunei (1994)
. Islamic
Inter-bank
Money
Market,
Malaysia
(1994)
Contempor
ary
. International
Islamic
Financial
Market,
Bahrain (2002)
. Islamic
Financial
Service Board
(IFSB),
Malaysia
(2002)
. International
Centre for
Education in
Islamic Finance
(2006)
. ANZ Global
Islamic
. International
Finance,
UK
Diagram: 1 Snapshot of Development
of Islamic
Banking
Islamic
.
Bank
(1989)
around the globe
Liquidity
Muamalat
Management
Malaysia
With time, during the 1970s several Islamic banks came into existence, including the
Dubai
Berhad
Islamic Bank (first Islamic private commercial bank, 1975), the Faisal Islamic bank Corporation
of Sudan
(2010))
(1999)
(1977) and the Bahrain Islamic bank (1979). Others from the Asia
Pacific region include
the
3 | Page
Philippine Amanah Bank (PAB), formulated under presidential decree. Pakistan also had an
established Islamic banking system at the time which unfortunately didnt survive.
Within a decade of the first private bank coming into existence in Dubai, the global industry
had more than 50 such banks. Most banks were a result of private initiatives, whereas the
first concrete government initiative was taken by the Iranian government, when in 1985 no
bank was permitted to give or take interest.
The true phase of development of Islamic financial institutions actually occurred in the
1980s. As part of development, Islami Bank Bangladesh Limited was incorporated in 1983 as
the first Shariah based interest free bank in South and South-East Asia. Earlier initiatives
were more inclined towards interest free Islamic banking, but the emergence of financial
systems has evolved in the 80s. In 1985, the High Council of OIC (Organization of Islamic
Conference) declared takaful (Islamic insurance) as Shariah compliant. The new, wider
spectrum of Islamic finance covers not only banking activities but also capital markets,
capital formation and other financial instruments and intermediaries.
The biggest change in terms of adaptability came in 1991 when the Accounting and Auditing
Organization for Islamic Financial Institutions (AAOIFI) was established to advise on Islamic
finance standards all over the world. Later, the development of uniform standards was
supported by other organizations such as Islamic Financial Services Board (IFSB) in Malaysia
in 2002.
4.0
5.0
Islamic Banking has become an attractive banking system among the Muslim and nonMuslim market participants around the globe. Obviously, this is not only driven by religious
implication but also by economic justification or the benefits it offers. The global market for
Islamic finance at the end of 2011 was worth around $1.3 trillion, according to the UK Islamic
Finance Secretariat. The total value of Shariah-compliant assets has grown by 150% since
2006. Islamic financial institutions are growing at around 20% per annum, which exceeds
that of conventional financial industry. As can be seen over the years, Islamic banking has
gained momentum on a global scale. Financial Institutions all over the world have launched
their own Islamic banking units in trying to keep up with the pace of growing demand for
Shariah compliant products and services. There are more than 300 Islamic banks and
financial institutions in more than 70 countries of Asia, Africa, Europe, and America including
countries like the U.K, U.S.A, Germany, Argentina, Denmark, Luxemburg, Switzerland and
India. Although Islamic Banking is not allowed as per the current regulatory system of India,
a good number of financial institutions claim that they are working as per Islamic principles.
The journey of Islamic banking in Bangladesh was started with the incorporation of Islami
Bank Bangladesh Limited in 1983 which is also the first bank in South-East Asian region.
Later on six other banks were established/converted to operate as Islami bank in the
country. In addition, a good number (around 15) of traditional banks including some foreign
ones have opened Islamic banking branches and windows to cater to the growing demand of
Islamic banking products and services. During the last decade, Islamic banks experienced
phenomenal growth in terms of deposit and investment base.
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Total deposit base of Islamic banks stood at around Tk.240 billion at YE 2011 registering
around 13% market share. The cumulative average growth rate (2005-2011) of deposit of
Islamic banks was more than 30% against industry growth rate (excluding Islamic banks) of
around 20%.
On the contrary, investment base stood at around Tk. 209 billion registering around 18%
market share. The cumulative average growth rate (2005-2011) of investment of Islamic
banks was also more than 30% against industry growth rate (excluding Islamic banks) of
around 14%.
6.0
5 | Page
the Committee also supervise a group of Shariah Auditors who oversees the income
generating and other activities of the bank in line with the Shariah principle.
6.2
Mobilization of Deposit:
Islamic Banks focus more on welfare and financial inclusion in deposit mobilization. It
encourages small depositors to save money instead of collecting big deposits from few
customers. As such Islamic banks offer some special deposit products like, Cash WAQF,
Mudaraba Hajj Savings, Mudaraba Mohor Savings, etc. The Mudaraba Depositors agree to
share profit and bear loss on the investment of their deposit. As a result the Bank enjoy
better liberty to invest in risky but more beneficial ventures.
Islamic Mode:
1. Deposit/Amanah
Depositors
Conventional Mode:
Depositors
Bank
1. Interest free
Deposit/Loan
2. Principal as Demanded by the
Depositors
Bank
Islamic Mode: Under Islamic mode, the bank mobilizes deposit under mudaraba principle.
Unlike conventional banks, Islamic banks do not pay fixed rate of interest rather distributes a
certain percentage (say minimum 65%) of its investment-income earned through
deployment of mudaraba fund to the depositors.
Depositors
(Shahib-al-maal)
1. Funds for
Investment
2. Principal + Share in Profit
Bank
(Mudarib)
In the above case, the principle is not guaranteed; losses if any are to be shared by the
contributors of fund Conventional Mode:
Investment:
Depositors
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1. Interest based
loan
2. Principal + Interest
Bank
Islamic Mode:
Bank
3. Goods/Services
Banks
Client
1. Cash
Payment
2.
Goods/Service
s
Supplier
Conventional Mode:
Banks
1. Loan
Bank
4. Principal + Interest
Client
Supplier
2. Cash
Payment
3. Goods
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Islamic Mode:
4. Rental+ Principal
Bank
Banks
Client
1. Cash
Payment
2. Assets
Conventional:
Asset Owner
Bank
Client
1. Loan
2. Principal + Interest
2. Rentals
3. Usufruct of
Assets
Asset Owner
6.3.3. Partnership Mechanism: Partnership mechanism can also take place in two
modes-mudaraba and musharaka. Under mudaraba mode of financing, bank (here called
Sahib-al-maal) provides fund while client (here called mudarib) provides expertise and
management support for the enterprise. Any profit accrued is shared between two parties on
pre-agreed upon ratios while capital loss (without negligence on the part of the
client/mudarib) is fully borne by the bank (capital provider). On the other hand, under
musharaka mode of financing, both the bank and the client invest capital in a venture and
share profit at a pre-agreed ratio and bear losses in proportion to capital. Unlike traditional
banking system, the banks involve in real economic activity.
2.3.1 Mudaraba Financing in Diagram
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Bank
4 .P+SP
1. Fund
\\
Enterprise/B
usiness
[
3. Capital +Profit
1(a)
Fund+
Effort
2. Application of Fund +
Effort
Client
6.3.3.2 Musharaka Financing in Diagram
Bank
2
(
a
)
2(b) Principal
+Share in Profit
Conventional:
1. Loan
Bank
Client
Enterprise/Business
P
+
S
P
Banks
Client
2. Loan Capital
3. Capital+ Profit
Economic
Activity
The above diagram reveals that under Islamic mode the bank directly involve
with the business enterprise which ensures sustainable development while
under conventional mode bank does not directly involve with economic
activity
6.4
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The modas operendi in IM is similar to that of conventional NGOs except for collateral free
investments are given to small entrepreneurs based on Shariah mechanism. Unlike other
NGOs, major focus is not given on recovery rather improvement of living standard of poor
people. The projects are closely monitored so that the members are really benefitted. They
are imparted education on literacy, cleanliness and other basic issues of human life. A
portion of the return received from the members are spent for their welfare such as
providing scholarship to their children, giving sanitary latrines, tree plantation, donation for
marriage etc.
In a nut shell, Islamic Micro Finance represents the merging of two growing sectors:
microfinance and the Islamic finance industry. Islami Bank Bangladesh Ltd. contributes more
than 50% of the global market share of Islamic Micro finance under the umbrella of Rural
Development Scheme (RDS) and Urban Poor Development Scheme (UPDS). Although it
contributes only 2% of the total business, around 20% manpower is deployed to provide the
service.
6.5
6.5.1 Bangladesh Govt. Islamic Investment Bond (BGIIB): Islamic banks cannot
participate in interest based treasury bills/bonds. In order to meet the SLR requirement,
Bangladesh Govt. Islamic Investment Bond (BGIIB) has been introduced in 2004 by the
Ministry of Finance, GOB. The Islamic banks buy the bonds where Bangladesh Bank acts as a
custodian of the fund. Bangladesh Bank invests the fund to different Islamic banks and
Islamic financial institutions. The profit received from the invested fund is distributed among
the contributory banks after deducting 5%-20% of profit to meet expenditure and
reinvestment. The return on BGIIB is not so lucrative since it gives lower return compared to
other instrument.
6.5.2 Islamic Inter-Bank Fund Market (IIFM): Unlike traditional banks, Islamic banks
cannot participate in call money market for overnight lending or borrowing. To remove the
problem, a new type of Shariah based money market instrument called Islamic Inter-bank
Fund Market (IIFM) has been established with the initiative of Bangladesh Bank to meet
overnight liquidity requirement. The IIFM is operated under mudaraba principle where the
fund taken by the bank is considered as mudarabah deposits.
The Islamic Bond Fund of the central bank will act as the custodian of the IIFM and does not
charge any fees for the fund. If any bank has excess fund, it may invest it in the IIFM for
overnight. Another Islamic bank requiring fund may borrow the money from the IIFM for
overnight and returns the principal with profit at the rate of three months' term deposit
which is finally adjusted upon finalization of Financial Statements.
4.3
Inter-bank Deposit: Interbank deposit among the Islamic bank and financial
institutions is another mechanism of Islamic money market. These inter-bank deposits vary
from one month to twelve months period. These deposits are taken/given on mudarabah
principle.
Steps needs to be taken to introduce some lucrative money market instruments for Islamic
banks to make it more vibrant.
7.1
Income Recognition
Income from investments is accounted for on accrual basis except investments under
Musharaka, Mudaraba, Bai-Salam and Bai-as-Sarf modes of Investment. Income from
investment under Mudaraba, Musharaka, Bai-Salam and Bai-as-Sarf modes is accounted for
on realization basis. Because the amount of income/profit from the investment under those
modes cant be ascertained until the amount of income generated from the ultimate
deployment of invested fund at the clients end is determined. Besides, fees and commission
income are recognized when earned.
Islamic banks cannot compute the "interest on interest" popularly known as "compounding
interest". For Islamic banks, unpaid profit shall remain as "profit earned but not yet
paid" and that amount cannot become part of principal amount of the following period.
While creating each deal/investment, in case of Bai mode of investment, profit is added to
the investment cost and the full price is recovered from the clients in installments. Rebate
may be allowed to the clients if the price is paid earlier than pre-fixed time.
Instead of charging interest for overdue periods, Islamic Banks charge compensation at the
same rate at which profit was agreed. Even though this income is Not Halal, Islamic Banks
need to charge this compensation to protect default culture and to ensure recoverability of
the investment thereby protecting the Amanah (i.e. deposits) of the Depositors. The
compensation is not charged on the clients who have suffered loss due to genuine reasons.
At IBBL, the applicability of compensation is determined by an independent review
committee headed by a justice. The realized portion of compensation is spent for charitable
purposes as per ruling of Shariah.
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However, Mudarabah Fund gets priority in the matters of investment over Bank's Equity and
other Cost-free Funds. Bank's Equity and Cost-free Funds are deployed only after full
investment of Mudaraba Deposits.
The gross income derived from investments during the Accounting year, at first, is allocated
to Mudaraba Fund and Cost-free Funds (including Bank's Equity) according to their
proportion in the total investment. Then the gross income from investments applicable for
Mudaraba Fund is distributed to Mudaraba Depositors and Bank according to the predetermined sharing ratio say 65:35 (depositors: bank). The depositors' share (i.e. the
aforementioned 65%) is then allocated to different mode of depositors according to the
eligibility of the depositors. Islamic banks strictly ensures paying at least up to the predetermined sharing ratio at any case but very often pays more than that to keep the return
of depositors competitiveness.
8.1
Islamic Banks all the way try their best to comply fully with Shariah principles but there is
some non-Shariah compliant items in which the Islami Banks are compelled to enter in.
However Islami Banks treat those items as follows:
Interest received from the balances held with Foreign Banks abroad and from Foreign
Currency Clearing Account with Bangladesh Bank are not credited to income, since it is not
permissible as per Shariah. These are utilized for charitable purposes after payment of
Income Tax thereon.
Moreover, Income which is irregular (doubtful) as per Shariah is not included in the
distributable income of the Bank. Bank charges compensation on overdue Bai-Murabaha and
Bai-Muazzal investments. Such compensation is not permissible as per Shariah to take into
regular income of the Bank. Realized amount of Doubtful Income and Compensation are
utilized for charitable purposes. Applicable Income Tax on these items is duly paid to the
Govt. Account.
8.2 Zakat:
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Zakat is paid by the Islami Banks at the rate of 2.58% (instead of 2.50% as the Banks
maintain its Financial Statements following Gregorian Year) on the closing balances of Share
Premium, Statutory Reserve, General Reserve and Dividend Equalisation Accounts as per
guidelines of Shariah.
Zakat is charged in the Profit & Loss Account of the Banks as per Guidelines for Islamic
Banking issued by Bangladesh Bank through BRPD Circular No. 15 dated 09.11.2009. Zakat
on Paid up Capital and Deposits is not paid by the Bank, since it is the responsibility of the
Shareholders and Depositors respectively.
Though Zakat is not usually allowed as expenditure by the Tax Authority, it should be made
tax-free to encourage payment of Zakat by the Institutions which would help reduction of
poverty at a rapid rate. Islamic Banks Zakat should be treated as business expenditure
since they are bound to pay Zakat as per statute to follow Shariah.
9.0
9.1
AAOIFI Standards:
The Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) is an
Islamic international autonomous non-for-profit corporate body that prepares accounting,
auditing, governance, ethics and Shariah standards for Islamic financial institutions and the
industry. It was established on 27 March 1991 in the State of Bahrain and till date AAOIFI has
issued 26 Accounting Standards, 5 Auditing Standards, 7 Governance Standards, 2 Ethics
Standards and 45 Shariah Standards (See Annexure-A). Professional qualification programs
(notably CIPA, the Shariah Adviser and Auditor "CSAA", and the corporate compliance
program) are presented now by AAOIFI in its efforts to enhance the industrys human
resources base and governance structures.
As an independent international organization, AAOIFI is supported by institutional members
(200 members from 45 countries, so far) including central banks, Islamic financial
institutions, and other participants from the international Islamic banking and finance
industry, worldwide.
AAOIFI has gained assuring support for the implementation of its standards, which are now
adopted in the Kingdom of Bahrain, Dubai International Financial Centre, Jordan, Lebanon,
Qatar, Sudan and Syria. The relevant authorities in Australia, Indonesia, Malaysia, Pakistan,
Kingdom of Saudi Arabia, and South Africa have issued guidelines that are based on AAOIFIs
standards and pronouncements."
9.2 IFSB
The Islamic Financial Services Board (IFSB) is an international standard-setting organization,
formed by the central banks of Islamic countries, promotes and enhances the soundness and
stability of the Islamic financial services industry by issuing global prudential standards and
guiding principles for the industry, broadly defined to include banking, capital markets and
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insurance sectors. The IFSB also conducts research and coordinates initiatives on industry
related issues, as well as organizes roundtables, seminars and conferences for regulators
and industry stakeholders.
The Islamic Financial Services Board (IFSB), which is based in Kuala Lumpur, was officially
inaugurated on 3rd November 2002 and started operations on 10th March 2003. It serves as
an international standard-setting body of regulatory and supervisory agencies that have
vested interest in ensuring the soundness and stability of the Islamic financial services
industry. In advancing this mission, the IFSB promotes the development of a prudent and
transparent Islamic financial services industry through introducing new, or adapting existing
international standards consistent with Shariah 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.
As at December 2012, the 184 members of the IFSB comprise 55 regulatory and supervisory
authorities, eight international inter-governmental organizations and 121 market players,
professional firms and industry associations operating in 41 jurisdictions.
Malaysia, the host country of the IFSB, has enacted a law known as the Islamic Financial
Services Board Act 2002, which gives the IFSB the immunities and privileges that are usually
granted to international organizations and diplomatic missions.
Since its inception, the IFSB has issued 19 Standards, Guiding Principles and Technical
Note for the Islamic financial services industry (See Annexure B).
10.0
10.1 GCIBAFI
The General Council for Islamic Banks and Financial Institutions (GCIBFI) is an international
non-profit organization formed jointly by the Islamic Development Bank and many other
Islamic financial institutions. Operation license was obtained in The Kingdom of Bahrain on
May 2001.
Main objectives of GCIBFI are to:
Create a public awareness of Islamic Shariah concepts, rules and provisions related
to them
Develop the Islamic financial industry
Cater for the interests of its members and confront the common difficulties and
challenges.
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10.2 IIFM
International Islamic Financial Market (IIFM) is the international Islamic financial markets
organization focused on the Islamic Capital & Money Market (ICMM) segment of the Islamic
Financial Services Industry (IFSI). Its primary focus lies in the standardization of Islamic
financial products, documentation and related processes at the global level. IIFM is based in
Manama, Bahrain.
IIFM was founded with the collective efforts of the Islamic Development Bank, Autoriti
Monetari Brunei Darussalam, Bank Indonesia, Central Bank of Bahrain, Central Bank of
Sudan and the Labuan Financial Services Authority (Malaysia) as a neutral and non-profit
organization.
Besides the founding members, IIFM is supported by its permanent member State Bank of
Pakistan as well as by a number of regional and international financial institutions and other
market participants as its members.
IIFM benefits to the Islamic Financial Services Industry:
10.3 IICRA
The International Islamic Centre for Reconciliation and Arbitration (IICRA) is an international,
independent, non-profitable organization, and one major infrastructure institutions of the
Islamic finance industry.
The center settles in all financial or commercial disputes and conflicts that arise between
financial or business institutions that choose to apply the provisions of Islamic law ;Shariah
principles, in resolving their disputes. Other than, between these institutions and their
clients or between them and third parties through reconciliation or arbitration.
IICRA has been established:
-
To fulfill the Islamic financial industry needs in order to be able to settle the disputes
in accordance with the Islamic Shariah laws.
To respond to the peculiarities of the Islamic financial services concerned with the
products and contracts.
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To fill the vacuum of the experts in the Islamic Financial Industry field.
At the regional and international level it can be seen many circumstances that strengthen
the position of the Centre and the factors of the success lie on the approval of the majority
member countries of the Organization for Islamic Conference on the regional and
international accords concerned with the approval of the rulings of the arbitrators, and in
the absence of a specialized international commercial arbitration Centre in the Arab and
Islamic region to settle the Islamic financial transactions.
10.4 IRTI
The Islamic Research and Training Institute (IRTI) is an affiliate of the Islamic Development
Bank Group responsible for leading the development and sustenance of a dynamic and
comprehensive Islamic Financial Services Industry that supports socio-economic
development in Member countries. It was established in 1981 in Saudi Arabia. The institute
has vast history of doing research in the area of Islamic banking and finance.
11.0 Conclusion
The superiority of Islamic baking derives from its involvement of real economic activity.
During nineteen fifties Islamic banking concept was mere a text book word and was limited
to theoretical extravaganza. The sixties was actually the period of experimentation and
Islamic banking started gaining momentum in seventies. The eighties and nineties
constitute the period of consolidation. And now it is coming up as the only just and welfareoriented banking system of the modern world. Islamic banking system has been proved to
be superior and more resilient during the global financial crisis due to their non-involvement
of the toxic assets in the banking system and adherence to real assets in lending which is
directly linked with economic development and prosperity of the country. By their inherent
nature and objectives, Islamic banks focus on moral aspects of financing. Rapid growth of
Islamic banking in an environment of overwhelmingly dominated conventional finance
reveals the system efficiency and superiority of Islamic Banking.
=============================
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References
1.
Public Relation
in
Bangladesh:
17 | P a g e
Annexure A
Governance standards:
18 | P a g e
2. Sharia Review.
3. Internal Sharia Review.
4. Audit and Governance Committee for
IFIs.
5. Independence of Sharia Supervisory
Board.
6. Statement on Governance Principles for
IFIs.
7. Corporate Social Responsibility.
Ethics standards:
1. Code of ethics for accountants and
auditors of IFIs.
2. Code of ethics for employees of IFIs.
23. Agency.
Shariah standards:
1. Trading in currencies.
19 | P a g e
27. Indices.
28. Banking Services.
29. Ethics and stipulations for Fatwa.
30. Monetization (Tawarruq)
31. Gharar Stipulations in Financial
Transactions
32. Arbitration
33. Waqf
34. Ijarah on Labour (Individuals)
35. Zakah
36. Impact of Contingent Incidents on
Commitments.
37. Credit Agreement
38. Online Financial Dealings
39. Mortgage and its Contemporary
Applications.
40. Distribution of Profit in Mudarabahbased Investments Accounts.
41. Islamic Reinsurance
42. Financial Rights and Its Disposal
Management
43. Liquidity and Its Instruments
44. Bankruptcy
45. Capital and Investment Protection
Annexure-B
Published Standards
1. December
2005:
IFSB-1:
Guiding
Principles
of
Risk
Management
for
Institutions
(other
than
Insurance Institutions) offering
only Islamic Financial Services
(IIFS)
2. December
2005:
IFSB-2:
Capital
Adequacy
Standard for Institutions (other
than Insurance Institutions)
offering only Islamic Financial
Services (IIFS)
3. December
2006:
IFSB-3:
Guiding
Principles
on
Corporate
Governance
for
Institutions
offering
only
Islamic
Financial
Services
(Excluding Islamic Insurance
(Takful)
Institutions
and
Islamic Mutual Funds
4. December
2007:
IFSB-4:
Disclosures to Promote
Transparency
and
Market
Discipline
for
Institutions
offering
Islamic
Financial
Services
(excluding
Islamic
Insurance (Takful) Institutions
and Islamic Mutual Funds)
5. December
2007:
IFSB-5:
Guidance
on
Key
Elements in the Supervisory
Review Process of Institutions
offering
Islamic
Financial
20 | P a g e
Services
(excluding
Islamic
Insurance (Takful) Institutions
and Islamic Mutual Funds)
6. December
2008:
IFSB-6:
Guiding
Principles
on
Governance
for
Islamic
Collective Investment Schemes
7. January
2009:
IFSB-7:
Capital
Adequacy
Requirements
for Sukk,
Securitisations and Real Estate
investment
8. December
2009:
IFSB-8:
Guiding
Principles
on
Governance for Takful (Islamic
Insurance) Undertakings
9. December
2009:
IFSB-9:
Guiding
Principles
on
Conduct
of
Business
for
Institutions
offering
Islamic
Financial Services
10. December
2009:
IFSB-10:
Guiding
Principles
on Sharah Governance
Systems
for
Institutions
offering
Islamic
Financial
Services
11. December
2010:
IFSB-11:
Standard on Solvency
Requirements
for Takful (Islamic Insurance)
Undertakings
3. December
2010:
GN-3:
Guidance Note on the
Practice of Smoothing the
Profits Payout to Investment
Account Holders
13. March
4. March
2012:
IFSB-13:
Guiding
Principles
on
Stress Testing for Institutions
offering
Islamic
Financial
Services
Guidance Notes
1. March
2008:
GN-1:
Guidance
Note
in
Connection with the Capital
Adequacy
Standard:
Recognition of
Ratings
by
External
Credit
Assessment
Institutions
(ECAIs)
on Shar'ah-Compliant Financial
Instruments
2011:
GN-4:
Guidance
Note
in
Connection
with
the
IFSB
Capital Adequacy Standard:
The Determination of Alpha in
the Capital Adequacy Ratio for
Institutions
(other
than
Insurance Institutions) offering
only Islamic Financial Services
Technical Notes
2. December
2010:
GN-2:
Guidance
Note
in
Connection
with
the
Risk
Management
and
Capital
Adequacy
Standards:
Commodity Murbahah Transac
tions
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