Islamic banking to be available in Azerbaijan’s regions
Baku, Azerbaijan, Nov. 15
By Emin Aliyev - Trend:
The International Bank of Azerbaijan (IBA) plans to expand its activities as part of the Islamic banking in the country, Director of the Islamic Banking Department of the IBA, Behnam Gurbanzade said on Nov. 15.
He made the remarks at the VI Baku International Banking Conference of CIS countries, held in Baku.
"Retail customers in Baku are funded today as a part of Islamic banking. In the regions a special attention will be paid to the micro-financing of private households and businesses," Gurbanzade said.
According to him, the weighted average deposit within the Islamic retail portfolio is valid for one year.
"The total amount of the Islamic deposit portfolio is approximately $2.5 million, and the total funding of consumer customers is slightly more than $10 million. Additionally, the IBA is the first bank in Europe to present the specialized Islamic payment card. This versatile card issued in conjunction with MasterCard, is the first such product. Yes, this is a product designed for a very narrow segment of consumers, but it shows that every client is important for the bank," Gurbanzade said.
IBA started rendering Islamic banking services in 2003, becoming the first in the country's banking market. The bank has been providing services in this sphere with the resources attracted from the Islamic Development Bank group.
Last year a consortium of Salans, KPMG, Pinsent Masons and Dar al Shariah companies was assisting IBA in the creation of a specialised structure for rendering products and services of Islamic banking.
The IBA was founded in January 1992 as the successor of the Vnesheconombank's Azerbaijani branch. The IBA holds the dominating position in the country's banking sector. The bank's main shareholder is the Azerbaijani government which owns a 50.2 per cent share. The remaining shares of the bank are owned by private individuals and legal entities.