The desire for an interest free mode of banking has
been prevalent in Pakistan for many years now. Its eventual
formalisation in the banking sector has been delayed pending the
development of appropriate products, systems and procedures in keeping
with the spirit of Shariah. The transition from the existing to the
proposed system may take time and effort but the banks aspiring towards
the new system can learn a few lessons from those who have been
endeavouring to undertake banking in Shariah approved modes for the past
decade or more. Many objections are raised on the Shariah compliance of
these institutions but one should keep an open mind as to the
imperfection of the environment these banks operate in and give credit
to them for having introduced and continue to do business in Shariah
approved modes, even if it means lower returns and innumerable setbacks.
Faysal Bank is one such full service commercial bank
offering, investment, corporate, commercial and retail banking services.
Faysal Bank has played a pioneering role in the introduction and
practice of Islamic Banking in the country. Our Islamic banking
character places us in a unique position, one of educators where we have
over the years of our existence, practically shown to customers,
competitors and the market in general, how Shariah compliant banking
works. Faysal Bank is a bank of the DMI group (Dar al Maal al Islami
Trust) which is a group of financial institutions set up solely for the
purpose of introducing Shariah approved financial systems. The DMI is
based in Geneva, Switzerland and has subsidiaries worldwide. Faysal Bank
is one of these subsidiaries.
Faysal Bank, in order to fulfil its core mission —
the introduction of Islamic Banking, has suffered some financial
setbacks in the past. With the grace of Allah and our persistent efforts
to make Islamic banking a feasible option, the last couple of financial
years have shown profitable operations.
Faysal Bank is a dynamic and progressive organisation.
Keeping its core values intact, it is not hesitant to take bold
initiatives to achieve its goals. We are co-sponsors of the Fayzan
Modaraba, a manufacturing Modaraba in which ICI, Al-Meezan and Pak
Kuwait as are the other participants. This again is another step towards
our commitment to Islamic Banking.
In our role as developers and introducers of new
modes of financing, we have not forgotten our retail customers. At
Faysal Bank, we have undertaken many consumer initiatives lately to
improve branch premises, enhance service standards, introduce new
deposit products, enter into strategic alliances with other service
providers to give our own customers maximum benefits.
The Bank has lately stepped into the area of consumer
finance and with the grace of Allah has achieved highly desirable
results. The Faysal Car and Consumer Durables Finance scheme has been
well received by the market for being based on the Shariah approved mode
of Ijara. The Bank also plans to introduce more new and innovative
consumer asset products in the future.
Our work on development of Shariah compliant
products, both asset and liability, is an on-going process for which we
take the advise and guidance from acknowledged experts of Islamic
finance. Our development of Shariah approved trade financing systems is
underway which will eliminate many of the objectionable traits of such
Faysal Bank is in an expansion phase. It has opened 6
new branches since last year and plans another 5 by the end of this
Over the last 15 years of its existence not only have
the employees of Faysal Bank been trained and honed as Islamic Bankers,
who gauge every transaction from the compliance angle, but a great deal
of credit for our success goes to our customers. It is because of the
support and patronage of these customers that our commitment to Islamic
banking gains added strength over the years and we are able to fulfil