Meezan Bank's SSB Meets To Solve Islamic Banking Liquidity Issues

Meezan Bank's Shariah Supervisory Board met to take up the major issues and challenges to Islamic banking industry with focus on the critical challenges to liquidity management in Islamic banking.

KARACHI, (UrduPoint / Pakistan Point News - 21st May, 2018 ) :Meezan Bank's Shariah Supervisory Board met to take up the major issues and challenges to Islamic banking industry with focus on the critical challenges to liquidity management in Islamic banking. The board carefully reviewed and discussed various solutions for addressing the excess liquidity situation of Islamic banks and provided guidelines regarding different proposals presented by the management of Meezan Bank. It also approved a Bai Muajjal Sukuk transaction for the bank to provide Shariah-compliant financing to the Government of Pakistan, said press release here on Monday. With lack of Shariah-compliant liquidity management instruments or equivalent Government securities and money market instruments, Islamic banking operations in the country face a liquidity bottleneck which places them at a competitive disadvantage with respect to their conventional counterparts, it said.

Chaired by Justice (Retired) Muhammad Taqi Usmani, the meeting was also attended by Meezan Bank's Founding President and CEO Irfan Siddiqui, senior officers the bank and Al-Meezan Investment Management Limited. The board members noted positively that assets worth over Rs 100 billion being managed under 24 different funds/plans, Meezan Bank's subsidiary, Al-Meezan Investment Management Limited (AMIM) has outpaced almost all players of the mutual funds industry in terms of growth in assets under management. The SSB expressed satisfaction on AMIM's progress and provided guidelines on various matters pertaining to the asset management industry.