Regulatory Alerts2025-03-05 | DMMD Circular No. 03Mudarabah Deal Confirmation: SBP Mudarabah Financing Facility
This document provides the standardized Mudarabah Deal Confirmation template for Islamic Banking Institutions (IBIs) participating in SBP's Standing Ceiling Facility and Open Market Operation (OMO) Injections. It establishes the legal framework for collateral pledging, authorizes SBP to debit accounts at maturity, and grants SBP the authority to sell collateral without a court decree in the event of default. The agreement further mandates that the IBI bears all costs, liabilities, and legal expenses arising from the transaction, pledge maintenance, or potential enforcement actions.
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