role of dab by zulifqar ali khan

8/6/2019 Role of DAB by Zulifqar Ali Khan

1/16


2/16

Da Afghanistan Bank

Islamic Banking Unit Financial Supervision Department

Role of DAB and Regulatory

Framework of Islamic Banking in

Afghanistan

Zulfiqar Ali Khan

Head of Islamic Banking Unit

Financial Supervision Department

[email protected]


3/16

Da Afghanistan BankIslamic Banking Unit Financial Supervision Department

Role of Da Afghanistan Bank


4/16


The vision of DAB is that of a monetary

institution which upholds international bestpractice in fostering price stability and a sound

financial system conducive to macro-economic

stability, and broad-based economic growth.

Our Vision


5/16

Da Afghanistan BankIslamic Banking Division Financial Supervision Department

Basic Tasks of DAB:

Formulate, adopt and execute the monetary policy of Afghanistan.

Hold and manage the official foreign exchange reserves of

Afghanistan.

Print and issue Afghani banknotes and coins.

Act as banker and adviser to, and as fiscal agent of, the State.

License, regulate and supervise banks, foreign exchange dealers,

money service providers.

Establish, maintain and promote sound and efficient systems for

payments.


6/16


Islamic Banking Unit

Financial Supervision Department


7/16


Function of Islamic Banking UnitDevelopment of infrastructure for Islamic Banking industry-

Determine direction of development of Islamic banking in Afghanistan;

Creation of sound legal and shariah infrastructure;

Market development and public awareness.

Safeguarding stability of Islamic Banking system- Introduce regulatory and prudential policies for development of Islamic banking

industry;

Monitor financial condition of Islamic financial institutions to ensure compliance

with laws, regulation and guideline;

Promoting industry best practices and credit culture.

Islamic banking unit undertakes among other things, the following tasks-

Secretariat to the national Shariah advisory board;

Develop Shariah policies for the industry;

Product review ;

Islamic Banks examination; and

Advice to the industry;


8/16


PROJECTOWNER/GOVERNOR/

DEPUTY GOVERNOR

GENERAL DIRECTORFINANCIAL

SUPERVISION

DEPARTMENT

DEPUTY DIRECTORISLAMIC BANKING

DIVISION ADVISOR

STEERINGCOMMITTEE

ACOUNTINGREPORTING

SECTION

OFF-SITESECTION

ON-SITESECTION

2 STAFF 2 STAFF 2 STAFF 2 STAFF 1LAWYER

R&DSECTION

LEGAL&SHAIAH SECTION

LICENSING

SECTION

2 STAFF

ISLAMIC BANKING

OFFICE

COORDINATOR

SHARIAHBOARD

Structure of Islamic Banking within FSD


9/16


Islamic

banks & takaful

companies Islamic

Capital

Market

Islamic

Money

Market

Money

marketConventional

banks & insurance

companies

Capital

market

Dual

banking

system

Supported by human capital infrastructure

GOVERNANCE

Legal & Regulatory

DAB law

Banking law

DAB Islamic Banking lawMortagage law

AML

CFT

Shariah Framework

Shariah Advisory Council

Shariah Committees

Shariah Parameters

Shariah Governance Framework

Afghanistan financial system

The strategic goal and objectives described in the DAB strategic plan

DIVERSIFIED PLAYERS

Islamic Banking

17 banks

10 local commercial banks

2 state owned banks.

5 foreign branches .

Takaful/insurance co.

2 insurance operators

0 takaful operators


10/16


Sufficient number ofstrong & highly

capitalized Islamicfinancial institutions.

Sufficient number ofwell-trained high

caliber individual &management team

with required.

Comprehensive,conducive and

efficient shariahregulatory frame

work .

Comprehensive andcomplete range ofIslamic financial

product & services.

High level objectives of Islamic banking


11/16


Regulatory Framework of Islamic Banking inAfghanistan


12/16


1. Law of Islamic Banking

Status: Final stage.

2. Afghanistan Deposit Insurance Corporation (ADIC) (amendment to

Banking Law)

Status : under review by Economy committee ofLowerHouse

3. Law on Financial Leasing

Status : in Parliament

4. Law on Mortgage of Immovable Property (Mortgage Law)

Status : Enforced. Printed into OG 990.

5. Law on Secured Transactions ofMovable Property (Movables Law)Status : Enforced. Printed into OG990.

6. Law ofNegotiable Instruments (NI Law)

Status : Enacted. Printed into OG971. Under review by LowerHouse.

Regulatory Framework


13/16


14/16


New Regulations on Statutory Reserve Requirement for Islamic Banks

New Regulations on Liquidity Requirement for Islamic Banks

New Regulations on the Establishment of Islamic Banks /Windows /

Branches on Licensing Requirement, Fee and OtherRequirements

New Regulations on Internal Financing for Islamic Banks

New Regulations on the Conversion ofConventional Bank to Islamic

Bank

New Regulations on the establishment and governance of Shariah

Committee for Islamic Banks /Windows

Regulations on Reporting ofComplaints by Customer for Islamic Banks

pertaining to Shariah issues

DAB GUIDELINE FOR ISLAMIC BANKS


15/16

Approach to Implementation 3 Phases

Phase 3: Raise performance standards throughcontinuous improvements to operational andinstitutional framework.

.

Phase 2: Stimulation of competition andupgrading of infrastructure.

.

Phase 1: Develop the operational andinstitutional framework.

2010

2015



16/16

Thank You

CENTER OF ISLAMIC BANKING & ECNOMICS

Head Office:192- Ahmad Block, New Garden Town , Lahore, Pakistan

Ph: +92-42-35913096-8, 35858990, 38407850

Fax: +92 -42-35913056

E-mail : [email protected]

Web: http://www.alhudacibe.com

role of dab by zulifqar ali khan

Documents