The MCB has applied for licence to open 'dedicated branch' and within the next three months its first dedicated branch will start operation in Karachi, Muhammad Shoaib Qureshi, Senior Executive Vice President and Head of Bank Operations & Islamic Banking Group, Muslim Commercial Bank, said in an interview.
"The credit would go to MCB
for establishing first dedicated Islamic branch in Pakistan.Not only this, but we will also open four more such branches in the city this year," he
Experienced staff has been selected and imparted necessary training and courses besides making in-house arrangements, he
On transformation of existing banking to Islamic banking, he
said that over the last three decades Islamic banking and finance has developed into a full-fledged system.Today, over 200 Islamic financial institutions are working in 42 countries, including Kuwait, Dubai, Saudi Arabia, Iran, Malaysia, Brunei, Bangladesh, Pakistan, USA, UK, Canada, Switzerland, Australia and Sri Lanka.MCB
has been working on Islamic banking since Supreme Court verdict was announced.
The bank has also hired another Senior Executive Vice President who is working on preparation of manuals, procedures, guidelines and development standard documentation for deposits and finance, Qureshi
On future of Islamic banking, he
said that last five years' data shows that Islamic banking is growing by 15 percent at world level, which is the highest in the world.Meezan Bank
, Faysal Bank
, Al Baraka Islamic Bank
, and First Islamic Investment Bank
have obtained licences for Islamic banking while other banks, including Habib Bank, AG
etc, are in the process of initiating Islamic banking products, which shows very bright future for Islamic banking in Pakistan as well as in the world.
"For internal controls regarding Shariah requirements, we hired Shariah Adviser to ensure that all products developed by IBD are Shariah-complied in terms of practical implementation and documentation and monitoring from Shariah point of view that all transactions are taking place without any violation.Shariah Adviser shall also be member of Shariah Audit and Inspection
Similarly, for Authoritative Controls, Islamic Credit Manuals are in process of preparation and shall be vetted by Shariah Adviser, and all risk assessment procedures including Financial and Credit Analysis shall be done in accordance with the existing systems and policies.
To maintain adequate control on Islamic Risk Assets the same shall initially be booked at Dedicated Islamic Banking Branch only, Qureshi
said that the finance transactions would be initiated at branch level and with recommendations of head of IBD
shall reach Group head office.
Thereafter, the same shall be approved by him or forwarded with his
concurrence to appropriate approving authorities as per discretionary powers.
Limits have already been delegated to head of IBD
for incurring revenue and capital expenses for operational requirements of IBD
The Operational Manual shall cover matters relating to signing and passing limits for vouchers as per level of authority, indicating name of users etc, inter branch signature power, authorised signature powers for interbank and international transactions.
Power of Attorney with Signature Power will be allowed to senior officers/managers for representing bank in various legal matters.