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Islamic banking in Azerbaijan to be governed by new Banking Code

Business Materials 14 November 2014 18:07 (UTC +04:00)

Baku, Azerbaijan, Nov.14

By Maksim Tsurkov - Trend:

A package of amendments and additions to legislation in order to regulate the activities of Islamic banking in Azerbaijan will be introduced to the Central Bank of Azerbaijan in the first half of 2015, the head of the Department of Islamic Banking of the International Bank of Azerbaijan Behnam Gurbanzade told reporters Nov.14.

He said that the development of a package of proposals is carried out with the participation of representatives of several ministries, IBA, as well as the Central Bank with the assistance of local and foreign experts, including experts of Islamic Development Bank.

"In the first half year the proposals should be submitted to the Central Bank," said Gurbanzade. "The final package of documents will go to the cabinet of the country after consideration and approval."

He said that today the main task is to ensure the legislative regulation of Islamic banking in Azerbaijan.

"Legislative acts, regulating Islamic banking, will be included in the Banking Code, the creation of which is planned in Azerbaijan," he said.

IBA announced the launch of "Islamic window", created within the framework of the project on introduction of Islamic banking in the country in September 2012. Later, the Department of Islamic banking was created by the decision of the IBA in the bank. "Islamic window" of the IBA began providing services to customers in April. The range of services offered by the bank include such products of Islamic banking as Ijara - analogue of the traditional leasing, Vakala deposit - analogue of the traditional deposit, Islamic banking cards, opening Gard Hassan accounts.

IBA was founded in 1992 and is the largest bank in Azerbaijan. Currently, 50.2 percent stake in the bank is owned by the state, and 49.8 percent belongs to private shareholders.

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