‘Islamic banking growth is impressive’
ISLAMABAD: Attock Chamber of Commerce and Industry (ACCI) said that growth rate of Islamic banking in Pakistan is very impressive.
A decade back Pakistan had only one Islamic bank while now we have five Islamic banks and Islamic banking branches representing all the top ten conventional banks, it said. 75 countries have recognised Islamic banking, major banks including HSBC, Citigroup, Deutsche Bank and Standard Chartered have Islamic banking branches or windows, which prove success of Riba-free banking, said President ACCI, Tariq Mehmood.
Over nine hundred Islamic banking branches in Pakistan speak of the confidence of the masses in the Islamic banking and the successful handling of regulator, he added. He said the share of Islamic banks in the assets of all the banks could exceed ten percent in the current fiscal if introduction of new products was focused.
He asked the Islamic banks to exploit the full potential of interest-free banking, expand network and offer new products to reach to underserved sectors and unbanked population. He said Islamic banks should maintain the image of better risk managers, which was necessary for depositor’s confidence.
The deposit base of Islamic banking has been expanding faster than general banking due to speedy and better returns which was a very healthy development, he maintained. He asked Islamic banks to keep an eye on global strategies, remain Shariah compliant and find ways to improve rates of return to match inflation which would boost confidence of masses in Islamic banking. staff report