On Nov. 26, PAK CB required Islamic banks to pay profit on deposits.
PAK CB decided that Islamic banking institutions (IBIs) shall pay profit on PKR saving deposits equivalent to at least 75% of weighted average gross yield of all pools of IBI.
Amends circulars re instructions for profit and loss distribution and pool management for IBIs, circular no. 3 dated Nov. 19, 2012 and circular no. 1 dated Jan. 1, 2013.
Amendments
To determine gross yield of each pool, the monthly gross earnings of the pool shall be divided by the monthly average assets of the pool (excluding fixed assets).
However, the pools created by IBIs for Shariah compliant standing ceiling facility and Shariah compliant open market operations will be excluded from weighted average.
Effectiveness
The amendments will be effective from Jan. 1, 2025.
Regulators
PAK CB
Entity Types
Bank
Reference
Cir IFPD 09/2024, 11/26/2024;
Functions
Actuarial and Valuation; Compliance; Financial; Risk; Treasury
