An Islamic financial institution (IFI) is therefore one whose statute, rules and procedures expressly state its commitment to the principles of Islamic Shari’ah and to the banning of the receipt and payment of interest in any of its operations. As you are aware, the current regulatory regime does not permit financial institutions to engage in Islamic banking.
Prior to the decision, some said that if the procedure was not pursued properly in accordance with Article 104 (8) and (9) of the Treaty, the Pact was effectively “dead”. The press was rife with black humour - “obituaries” of the Pact were published. I do not share this view.