##h compliance of all bank operations. shariah advisory board has shariah scholars but also industry representatives. • bahrain, sudan and syria have adopted shariah standards issued by the accounting and auditing organization for islamic financial institutions ( aaoifi ) and some others use them as guidelines. both the prudential regulation and shariah inspection and supervision are integral elements of the check and balances to ensure products and transactions meet the test of authenticity and compliance with shariah. while these systems may not be in place right away but development and implementation of this regulatory and supervisory infrastructure requires build up of capacities both at institution and regulators level and will pave way for building confidence in islamic system. e. conclusion in conclusion, from a regulator ’ s perspective development of if in tandem with conventional finance will help broaden and deepen financial markets which will help not only meet diverse requirements but will also infuse financial stability. the evolution and path pursued by if industry has triggered debates regarding the authenticity and innovation. what is critical to recognize is that if by design has to be authentic and brings in additionality both in terms of superior corporate governance framework as good ethical practices are embedded in if, and risk sharing structures which along with product diversity that the system offers lend itself to innovation. product proliferation and approaches to security markets, development of islamic exchange and fund management will help nurture financial diversification from bank based to market centric system. proper application of pls system will help provide greater opportunities for innovation provided it is backed by the right corporate governance architecture. on their part regulators have provided the industry free play. cooperation among regulators has helped to develop core and supportive if infrastructure which better weaves in the unique features and nuisance of the if. development of islamic prudential regulatory and supervisory framework, which subscribes to basel standards for conventional banking, will pave the way for development of if, while tweaking the regulations to accommodate special risk characteristics of the if. institutional framework and evolving approaches for supervision systems will help build confidence among investor and customers. it is my belief that proper practical application of if has the potential of taking global finance to new frontiers and heights.

yaseen anwar : brief overview of pakistan ’ s banking sector and innovative banking practices speech by mr yaseen anwar, governor of the state bank of pakistan, at bahria university convocation, karachi, 22 december 2014. * * * vice chancellor, bahria university, prof …. ….. distinguished faculty members, dear students, ladies and gentleman, i would like to thank bahria university for inviting me to this convocation. first of all, let me congratulate all position holders and students who have earned their distinctions and university degrees through sheer willpower, hard work and dedication. your education has provided you with the resources to lead and change. you should be determined to create your own individual voice upholding the values of creativity championed by this institution, while acknowledging your link with the community. the importance of education cannot be overemphasized. education is fundamental to any society ’ s progress for it prepares generations to equip themselves with the knowledge and skills to meet the challenges of the ever changing world. when education blends with youthful energy, it organizes people economically, socially and politically, which helps the society to step - up on the ladder of civilization. education is the catalyst of national development ; it is what distinguishes nations form one another. pakistan has immense human potential. more than half of our population is below the age of 25 ; sadly the education systems aren ’ t appropriately managed and sufficient enough to exploit this potential. this is where institutions such as bahria university and the rest of private sector can play their role to ameliorate current educational level. to increase the pace of economic development, our policies must be focused towards advancement of education. for a stronger, respected and flourishing pakistan, we must in our capacity address the issues related to education. taking benefit of this opportunity, i would like to share my thoughts on the state of banking sector and the need for adopting innovative banking practices from around the world to deliver better customer value and financial inclusion in pakistan. in recent years, growth and turnaround in pakistan ’ s banking sector has been remarkable and unprecedented. classified as pakistan ’ s and region ’ s best performing sector, the banking industry ’ s assets have risen to over us $ 97 billion with profitability of rs 187 billion ( pre - tax ) in fy12 which is exceptional and at an all - time high. similarly, during fy 2012 deposits have grown at a fast clip of 17 percent which is the highest in