The Southern Regional Committee of the Institute of Chartered Accountants of Pakistan (ICAP) is organising a seminar on 'Reputational Risk for Islamic Banking' to be held on September 18 at 4:15 pm at ICAP House here.
An announcement on Saturday said that Pervez, Director, Islamic Banking Department, State Bank of Pakistan, Karachi will be the chief guest and Mufti M. Najeeb Khan, Shariah Advisor, Habib Metropolitan Bank Limited and Hasan A. Bilgrami, President/CEO, BankIslami Pakistan Limited, will be the speakers at the seminar.
It said the Islamic Banking in Pakistan is no more an alien. This in now an established industry, which has reached around 4.5 percent of the overall size of the banking market within around 5 years, at a pace, which at a minimum, may be termed as phenomenal.
Islamic banking has been defined as banking in consonance with the ethos and value system of Islam and governed, in addition to the conventional good governance and risk management rules, by the principles laid down by Islamic Shariah.
Islamic banking is expected not only to avoid interest-based transactions and other transactions, which are explicitly prohibited in the Islamic Shariah, but also to avoid unethical practices and participate actively in achieving the goals and objectives of an Islamic economic system. But practically, on the warfront, Islamic banking is subject to a number of risks, a significant one of whom is reputational risk.
Reputational risk is significant for all public-interest entities, banks being no exception to that. However, when we discuss Islamic banking, this risk emanates with higher magnitude and increased intensity.