IBA plans to expand line of Islamic products
Baku, Azerbaijan, Feb. 11
Trend - Emin Aliyev
The International Bank of Azerbaijan is planning to expand the line of Islamic products, head of the Islamic Banking Department of the IBA Behnam Gurbanzade said in an interview with "Azernews" newspaper on Feb. 10.
"So far, the Islamic Banking Department of IBA has several products to offer to their clients such as: Two types of Ijarah - house financing and goods financing, Qard-Hasan (current account) - for Individuals and Corporate customers, Wakalah deposit - from three up to 120 months, and Islamic Bank cards - Jasmine card, Qibla card. Furthermore, we are planning funding of small and medium businesses, servicing enterprise customers and the retail segment," Gurbanzade said.
According to his words, the International Bank of Azerbaijan has already started work on a Sukuk product (Islamic obligations).
"We are planning to issue our first Islamic Bonds in 2015 after legislation is developed. The current share of Islamic banking in the IBA credit portfolio is around 3 percent as of the end of 2013," Gurbanzade added.
The 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 were assisting IBA in the creation of a specialized 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 dominate position in the country's banking sector.
The bank's main shareholder is the Azerbaijani government which owns a 50.2 percent share. The remaining shares of the bank are owned by private individuals and legal entities.
Translated by R.A.
Edited by C.N.