As a new addition to Path Solutions’ client base, BoA will be implementing iMAL*IslamicFinancing and iMAL*ProfitCalculationSystem for its Islamic window operations.

iMAL*PCS provides end-to-end capabilities to manage the profit calculation and distribution cycle, making Islamic profit distribution more efficient. The process automation coupled with a complete set of dashboard data analytics capabilities gives decision makers of Islamic financial institutions the tools to make accurate decisions. The solution includes pool structures and profit distribution rates. All profit rate adjustments are made according to the Sharia and handled automatically by the system, which also allows Islamic financial institutions to specify the rules for splitting profits. The system provides each bank with facilities to tailor its own profit calculations according to the product set and define pool structures that reflect the income and expenses for finance and investment transactions funded by each pool.

Ethiopia has recently allowed the formation of full-fledged interest-free banks, and thus several banks are currently planning to convert to Islamic or raising fund to start Islamic banking services.