Pakistan’s Faysal Bank to Become a Full-fledged Islamic Lender by End of 2022 

Pakistan-based Faysal Bank Limited (Faysal Bank) has announced that it will ring-fence its remaining conventional loan portfolio and transition into a full-fledged Islamic lender by the end of 2022, according to a statement by the bank's Chief Financial Officer, Syed Majid Ali, on the 30th of August 2022.

Why it Matters?

Currently, Pakistan has five Islamic banks and 17 conventional banks with Islamic banking branches. Five years ago, Faysal Bank made the decision to change the entirety of its operations from conventional to Sharia-compliant. It used the "asset-led conversion" strategy, which gave priority to converting banking assets like investments and financings above liabilities like deposits. The bank began turning its conventional operations in...