(MENAFN) The long-awaited law to regulate Islamic banking and window operations of conventional banks in Oman is set to be circulated through a Royal Decree soon, Times of Oman reported.
The newspaper cited Central Bank of Oman Executive President Hamoud Sangour Al Zadjali as saying that the new regulation has been already approved by Majlis A'Shura and Cabinet and is pending a Royal Decree, which can come at any time.
Islamic Banking Draft Framework (IBRF), prepared by Ernst and Young, included a five-member Shariah board, exclusive branches for window operation, clear cut segregation of conventional and Islamic banking with separate teams of people and accounts and a 12 percent capital adequacy ratio.
As of the Shariah board, three should be experienced Islamic scholars and two should be from relevant field, either a professional in Islamic law or Islamic accounting.
Another major suggestion for window operation is that funds can be injected into Islamic line of business by a conventional parent bank, but Islamic banking operation cannot transfer money for using it in conventional banking.