Islamic banking now provides viable alternative banking solutions: President ICCI
ISLAMABAD: President Islamabad Chamber of Commerce and Industry (ICCI) Shaban Khalid Tuesday said the Islamic banking now provides viable alternative banking solutions and there is a need to organize more such events to apprise the businessmen and the general public of the Sharia compliant Islamic banking products.
He said this while addressing to a seminar on "Introduction to Islamic Banking and Dlearing Doubts" by Meezan Bank in collaboration with ICCI at Chamber House,when large number of business community attended the seminar.
Shaban Khalid said Meezan Bank should focus on developing innovative and competitive value propositions to meet the financial needs of today's competitive business environment.
President ICCI thanked Meezan Bank for organizing an awareness session on Islamic banking and hoped that the event will prove beneficial to the members.
On the occasion,Vice President, Product Development and Sharia Compliance, Meezan BankFarhanul Haq Usmani highlighted the differentiation between Islamic and conventional banking and said that due to interest-based conventional banking, many third world countries have fallen into serious debt trap.
He said conventional banking depends on rising banking spread as it takes deposits on minimum interest and lends at very high interest while Islamic banking focuses on developing partnership with depositors and customers.
He said 20% of current debt to third world is lent to buy arms and major portion of what is left is spent on useless projects while Islamic banking focuses on fostering trade and business activities.
Farhanul Haq Usmani highlighted various products of Islamic banking for corporate and individual customers and added that Islamic products cover 85% of the services offered by conventional banks.
He said five full-fledged Islamic banks are working in Pakistan and many conventional banks are also offering Sharia compliant Islamic products, which shows that Islamic banking is on a good growth trajectory.
He said Meezan Bank in cooperation with ICCI would like to hold more awareness events on Islamic banking products so that businessmen could utilize them for expansion of their businesses.