SBP wins IFN global award for promoting Islamic finance

KARACHI: The State Bank of Pakistan (SBP) has won the Best Central Bank of 2021 award for promoting Islamic finance, a statement said.

The Islamic Finance News (IFN), an arm of RED money Group, Malaysia, announced the SBP as the best central bank of 2021 across the world in promoting Islamic finance.

The results of global voting were disclosed on Thursday. The IFN Best Banks Poll is regarded as one of the prestigious accolades in the global Islamic finance space. Bank Negara Malaysia stood second while the Saudi Central Bank secured the third position.

The category is one of the closely fought contests among regulators competing for supremacy through exceptional advances made during the year. The SBP has won this award for the 5th time during the last seven years.

The central bank has won this coveted award for the year 2015, 2017, 2018, and 2020.

The IFN stated that they welcome back a leading light of the industry, where in a closely fought contest, 2020’s victor came roaring back to take the crown.

IFN stated that under the Governor, Dr Reza Baqir they look forward to even stronger support and leadership from the central bank over the coming year.

Baqir has been recently promoted to be the new chairman of the Council of the Islamic Financial Services Board (IFSB), from his role as the deputy chairman in 2021.

The State Bank of Pakistan has consistently promoted and encouraged Islamic finance within Pakistan, and has taken several significant steps, including the launch of 3rd five year Strategic Plan for Islamic banking 2021/25, Shariah compliant standing ceiling facility and open market operations.

They also include strengthening of Shariah governance mechanism, Shariah compliant regulations for the lender of the last resort (LOLR) facility and licencing regime for digital banking covering the Islamic segment.

Amidst the Covid-19 chaos throwing unforeseen challenges to the global financial market, the Islamic banking industry in Pakistan continued to maintain its impressive growth trajectory, as assets and deposits of the Islamic banking industry grew on a year-on-year basis by 28.2 per cent and 26 per cent respectively by September 30, 2021.

The market share of Islamic banking assets and deposits stood at 17 per cent and 18.6 per cent respectively, of the overall banking system in the country as of September 30, 2021.

The industry operates through a huge network of 3,651 branches and 1,579 Islamic banking windows (dedicated counters at conventional branches) steered by 22 Islamic banking institutions (IBIs) which include 5 full-fledged Islamic banks and 17 conventional banks having dedicated Islamic banking branches and windows.

The industry is growing on the back of continued support by the government which remains committed to provide an enabling platform for this industry to operate.

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