The State Bank of Pakistan (SBP) has invited feedback on the draft risk management guidelines for Islamic banking institutions (IBIs) formulated to further strengthen the regulatory framework in the area of risk management of IBIs.
These draft guidelines have been sent to the key stakeholders including Pakistan Banks' Association and Islamic banking institutions for comments and feedback by May 05, 2007. A copy of the draft has also been placed on the SBP website.
These guidelines are based on the 'guiding principles of risk management for Islamic financial institutions' issued by the Islamic Financial Services Board (IFSB), which is an international-standard setting body of regulatory and supervisory agencies.
The SBP is a founding member of IFSB and its representatives on technical committee and working group have actively contributed in preparation of aforementioned guiding principles.
Keeping in view the current SBP regulatory framework in the area of risk management, IFSB guiding principles on risk management have been tailored for Pakistani market. However, these guidelines will be in addition to the various risk-management guidelines issued by SBP from time to time and IBIs will be required to comply with both set of guidelines.
Courtesy by : Business Recorder