Azerbaijani Central Bank to research Islamic banking opportunities

Business Materials 8 October 2012 19:22 (UTC +04:00)

Azerbaijan, Baku, Oct. 8 /Trend A.Akhundov/

Azerbaijani Central Bank is not going to amend law or change regulative area for operation of Islamic banking in the country.

This was reported to Trend by general director of the Central Bank Rashad Orujev.

"We are researching the experience of work according to Sharia principles. This is interesting for us, as we are the regulators, we are researching opportunities on introduction of Islamic banking," Orujev added.

In his words, the legislature and regulative field are not adapted to control according Sharia principles and are not providing opportunities to conduct services in accordance with Islamic banking.

Orujev said, some of our banks are considering introduction of Islamic banking. Some separate elements, which they would like to enter the market, could be considered. We are not planning to introduce the control regime of Islamic banking. We are only considering this issue.
Azerbaijani International Bank first started conducting Islamic banking services in 2003. According to the decree of International Bank administration, a department of Islamic banking was established early in September.

Some other Azerbaijani banks has also started introducing products of Islamic banking. Nikoil Bank has introduced 'Wadiah uad Dhamanah' product of Islamic Banking. This product is non interest savings deposit. Nikoil Bank is also developing 3 more products in this direction. Moreover, Parabank has announced plans on introduction of Islamic Banking products.

In its turn, Islamic Bank of Development has stated that its ready for assistance in establishment of a bank, operating in accordance with Sharia principles, and to present technical assistance in instruction development, in particular.