As of April 2009, all our commercial banks are Basel II compliant. We established a Board for Financial Supervision for focussed regulation and supervision of banks and other financial institutions under RBI’s jurisdiction. We widened and deepened the financial markets in terms of instruments, products and participant, while continuing with a cautious approach towards exotic products.
The bank is a partner in trade and has to concern itself with the nature of business and profitability position of its clients. In the case of loss in business, the Islamic financier has to share that loss. To avoid the loss and reputational risk, the Islamic banks have to be extra vigilant about their clientele.