Section 39I: Conversion and Establishment of Islamic Banking Subsidiary

39I. Conversion and Establishment of Islamic Banking Subsidiary.__ (1) A banking company may convert its one or more branches or entire business and operations into an Islamic banking institution. (2) A banking company shall establish an Islamic banking subsidiary or shall convert it into a full-fledged Islamic bank if: (a) its Islamic banking branches exceeds 50% of the number of the total branches; or (b) the share of its Islamic banking assets exceeds 50% of its total assets; or (c) the capital attributable to its Islamic banking branches operations reaches the minimum required capital specified by the State Bank for an Islamic banking subsidiary. (3) The State Bank may issue regulations, directives, instructions, notifications, circulars, or guidelines, as the case may be, under this section from time to time.

Effective date: 1962-06-07

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