Post by Sapphire Capital on Sept 15, 2008 0:25:24 GMT 4
Reputation risks for Islamic Banking
Source: Nasir Mahmood
Karachi—Islamic Banking in Pakistan is no more an alien. This is now an established industry, which has reached around 4.5% of the overall size of the banking market within around 5 years, at a pace, which at a minimum may be termed as phenomenal. It 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 reputation risk. Reputation 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. The Southern Regional Committee of the Institute of Chartered Accountants of Pakistan (ICAP) is organizing a seminar on “Reputation Risk for Islamic Banking” to be held on Thursday, September 18, 2008 at Moosa D. Desai Auditorium ICAP House, Clifton, Karachi.
Pervez Said, 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.
Source: Nasir Mahmood
Karachi—Islamic Banking in Pakistan is no more an alien. This is now an established industry, which has reached around 4.5% of the overall size of the banking market within around 5 years, at a pace, which at a minimum may be termed as phenomenal. It 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 reputation risk. Reputation 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. The Southern Regional Committee of the Institute of Chartered Accountants of Pakistan (ICAP) is organizing a seminar on “Reputation Risk for Islamic Banking” to be held on Thursday, September 18, 2008 at Moosa D. Desai Auditorium ICAP House, Clifton, Karachi.
Pervez Said, 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.