KARACHI: A high-level international conference titled CotIB -“Conversion to Islamic Banking” highlighted opportunities for growth and innovation in Islamic Banking.
The conference brought together industry leaders, policymakers, and experts to discuss critical aspects of the transition including governance, capacity building, innovation, and social finance.
The conference underscored the immense potential of Islamic banking in driving economic growth, financial inclusion, and social development. Participants engaged in insightful discussions on the challenges and opportunities associated with the conversion process, fostering a collaborative environment for knowledge sharing and best practices.
Conventional to Islamic banking: SBP issues broad parameters for conversion
Addressing the conference Syed Samar Hasnain, Executive Director Islamic Finance Group, State Bank of Pakistan said that Pakistan’s banking sector is required to be Shariah-compliant by 2027 and to achieve this goal a well thought out plan and coherent actions requires from all stakeholders.
SBP’s is aim to continue leading the transformation towards a Shariah-compliant banking system he said and added that this vision aligns with the strategic plan of the State Bank of Pakistan, which has prioritized Islamic banking as a cornerstone of its efforts.
Through SBP-led initiatives, including the development of legal, regulatory, and supervisory frameworks, as well as the promotion of participatory modes of financing, Islamic banking’s share in the overall banking industry has increased manifold over the years, he informed.
Yasmin Hyder, Chief Executive of New World Concepts, highlighted the need for a learning platform like CotIB, to promote knowledge, understanding, dialogue & collaboration for conversion from Conventional to Islamic Banking.
Nadeem Hussain, Founder, Raqami Islamic Digital Bank delivered the keynote speech and highlighted the importance of robust governance frameworks in ensuring the integrity and stability of Islamic financial institutions.
Zafar Masud, Chairman, Pakistan Banks Association, emphasized the need for clear regulatory guidelines, effective risk management practices, and transparent reporting to build trust and confidence in the Islamic banking sector. He appreciated New World Concepts for arranging this very important dialogue, in collaboration with Learning Nest.
Consul General of Malaysia, Herman Hardynata Ahmad highlighted the achievements of Malaysia in developing the Islamic banking sector.
Jumadi Kadir, Group Chief Shariah, SME Bank Berhad, Malaysia presented a case study of Malaysian banks conversion from conventional to Islamic.
Practical implementation challenges faced in governance were highlighted in a high powered discussion with Rizwan Ata, President Bank Islami, Yousaf Hussain, President Faysal Bank, Mohd Atif Hanif, President, Al Baraka and Syed Amir Ali, Deputy CEO, Meezan, moderated by Iffat Mankani, CEO, JS Investments.
In the second session, titled Capacity Building, Professor Dr Ali Polat, from Turkiye made a presentation on “Learnings and Mistakes” in Islamic Finance. Capacity building emerged as a critical component of the conversion journey. A panel discussion highlighted the importance of investing in human capital development to equip industry professionals with the necessary skills and knowledge to meet the evolving demands of Islamic finance.
The discussion moderated by Moneeza Butt comprised Khalid Zaman Khan, Head HR, Meezan, Asim Asif, Group Head, Commercial Banking, Al Baraka Bank, Saleemullah Shaikh, Head Islamic, HMB, Azhar Aslam, Head Islamic Banking, SCB.
Copyright Business Recorder, 2024