Azerbaijan's largest bank starts Islamic financing in Russia

Business Materials 15 November 2014 14:24 (UTC +04:00)

Baku, Azerbaijan, Nov.15


International Bank of Azerbaijan OJSC will provide services on Islamic financing in Russia, said the director of the Department of Islamic Banking of the International Bank of Azerbaijan (IBA) Behnam Gurbanzade Nov.15 during VII Baku International Banking Conference of CIS member states.

"IBA Board decided to open an alternative banking department in the subsidiary bank in Moscow," he said. "This department will work within the framework of the IBA-Moscow Bank and develop Islamic financing."

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.

The current portfolio of IBA on Islamic banking is about 172-173 million AZN. Some 130 million AZN of them fall on the share of leasing, with 45 percent allocated to financing of mortgage. The remaining 42-43 million AZN account for corporate and consumer financing.

The official exchange rate for November 15 is 0,7843 AZN / USD.

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.

IBA-Moscow, a subsidiary of the International Bank of Azerbaijan, was established in 2002.At present, the bank's has its offices in Moscow, St. Petersburg and Yekaterinburg.