CHAPTER VI BANKING The Dual Banking System 201 (1) The Central Bank of Sudan shall be responsible for the formulation and conduct of monetary policy. All banking institutions shall be subject to rules and regulations set by the Central Bank of Sudan. (2) A dual banking system shall be established, and shall consist of an Islamic banking system that shall operate in Northern Sudan and a conventional banking system to operate in southern Sudan. (3) There shall be established the Bank of Southern Sudan as a branch of the Central Bank of Sudan to provide, inter alia, conventional banking services. Restructuring and Management of the Central Bank of Sudan 202 (1) The Central Bank of Sudan shall be restructured so as to reflect the duality of the banking system in the Sudan. The Central Bank of Sudan shall use and develop two sets of banking instruments, one Islamic and the other Conventional, to regulate and supervise the implementation of a single monetary policy through:(a) an Islamic financing window in Northern Sudan under a Deputy Governor of the Central Bank of Sudan using Islamic financing instruments to implement the national monetary policy in Northern Sudan, and (b) the Bank of Southern Sudan, headed by a Deputy Governor of the Central Bank of Sudan, to manage the conventional window using conventional financing instruments in implementing the same national monetary policy in southern Sudan. (2) The primary responsibility and mandate of the Central Bank of Sudan shall be ensuring price stability, maintaining stable exchange rate, sound banking system and issuance of currency. The monetary policy shall rely primarily on marketbased instruments instead of administrative allocation of credit. 87