Bankers equity: pioneering role in Islamic financing

Banker's Equity Limited (BEL), is a private corporation that is sponsored by the State Bank of Pakistan Banking Council. Its Board of Directors is made up of the Governor of the State Bank, the Chairman of the Pakistan Banking Council, the presidents of the nationalized commercial banks, and other top bankers. The main goal of the company is to act as a catalyst for development in the country's economy. Its focus lies on medium-sized and large projects. BEL's goal to develop the economy mirrors the national government's wish to do the same. BEL looks at three criteria when deciding on a project--credit-worthiness of borrowers, the viability of the product, and the prospects for investment returns. A cornerstone of the company's operations is profit-and-loss sharing. A particular concern of BEL is the encouragement of local machine manufacturing.