BAKU, Azerbaijan, March 2. Working group has been set up in Azerbaijan to introduce Islamic banking in the country, President of Azerbaijan Banks Association (ABA) Zakir Nuriyev said at the conference on "Prospects for the development of alternative financial markets in Azerbaijan", Trend reports.
According to Nuriyev, over the past 20 years of global changes and negative influences Islamic banking has remained the only sustainable platform.
"The introduction of Islamic banking tools in Azerbaijan will strengthen the country's financial sector," he noted.
The association’s head added that in terms of banking infrastructure and technology, Azerbaijan is ready for the speedy introduction of Islamic banking elements.
Islamic banking is banking or financing activity that complies with Sharia (Islamic law) and its practical application through the development of Islamic economics. Some of the modes of Islamic banking/finance include Mudarabah (profit-sharing and loss-bearing), Wadiah (safekeeping), Musharaka (joint venture), Murabahah (cost-plus), and Ijara (leasing).
ABA was founded by the initiative of 10 private banks in 1990 and was registered with the name of “Azerbaijan Commercial and Cooperative Banks Association”.
It has been operating under the name of “Azerbaijan Banks Association” since 1999. At present, 25 banks and two non-banking credit organizations and Azericard LLC, Millikart LLC, and Azerbaijan Credit Bureau are members of ABA.
The main purpose of the establishment of ABA was to actively protect the corporate interest of member organizations before legislative, executive and judicial bodies of the government, social organizations and international institutions, to meet their demand for different types of business services and to coordinate their activity.