Magazine article Economic Review

Islamic Banking Industry Constitutes 7.3 Percent of Overall Banking System in Pakistan

Magazine article Economic Review

Islamic Banking Industry Constitutes 7.3 Percent of Overall Banking System in Pakistan

Article excerpt

Mr. Muhammad Kamran Shehzad, Deputy Governor, State Bank of Pakistan has said that the Islamic banking industry at present constitutes about 7.3% of the overall banking system in Pakistan. Addressing the closing ceremony of a five-day Training Program on Islamic Banking which was jointly organized by State Bank of Pakistan (SBP) and Islamic Research and Training Institute (IRTI) at the National Institute of Banking and Finance (NIBAF), Islamabad on November 25, 2011 he said the Islamic banking industry since its relaunch in 2001 has gradually increased its share in the market.

He said that there are 5 full-fledged Islamic banks and 12 conventional banks having Islamic banking branches with a network over 840 branches in more than 70 districts across the country. He noted that the Islamic banking industry has maintained strong growth momentum with over 30 percent average annual growth during the last 6-7 years.

The Deputy Governor observed that the growth trend in Islamic banking industry is likely to gather further momentum with increasing awareness level and expansion of Islamic banking network in second and third tier cities of the country. Mr. Kamran Shehzad said that the strong growth momentum witnessed by the industry in Pakistan could be attributed, among others, to the key role played by the State Bank of Pakistan in providing an enabling environment. 'The State Bank has been at the forefront of almost all the initiatives that have been taken to help develop and promote the industry' he added.

[ILLUSTRATION OMITTED]

Besides developing a supportive regulatory and supervisory framework, the SBP is actively engaged in promotion and training and capacity building of the Islamic banking industry, he said. 'To address the awareness and misconception issues, we have launched an awareness campaign whereby targeted seminars and conferences are being organized for business community, academia, bankers and policy makers throughout the country. Further, a media campaign is being launched for mass awareness using electronic and print media, he added. The Deputy Governor said that a number of initiatives have been taken to build the industry's HR capacity and skills mix. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.