IBA to open subsidiary in Qatar
The International Bank of Azerbaijan (IBA), the
country`s leading bank, plans to open its first subsidiary in
Qatar, its steering board chairman has announced.
Jahangir Hajiyev said the subsidiary would begin operating with $10 million in capital, adding that entering the domestic banking sector with small capital investments is currently ineffective.
According to Hajiyev, due to high confidence in placing deposits in banks operating under Islamic canons, an outflow of funds to such banks from regular financial institutions has begun in Qatar due to the ongoing global crisis.
The Islamic banking system dwells upon the principle of social justice. This system rules out the payment of interest, and the division of profits is used instead. Such banks are already available in a number of Islamic countries as well as in some Christian countries densely populated by Muslims, such as Britain and Russia. By the end of 2008, the total budget of Islamic banks reached $600 billion.
IBA has been rated by the world`s leading institutions as Azerbaijan`s best bank based upon all financial and economic figures since 2002.
Jahangir Hajiyev said the subsidiary would begin operating with $10 million in capital, adding that entering the domestic banking sector with small capital investments is currently ineffective.
According to Hajiyev, due to high confidence in placing deposits in banks operating under Islamic canons, an outflow of funds to such banks from regular financial institutions has begun in Qatar due to the ongoing global crisis.
The Islamic banking system dwells upon the principle of social justice. This system rules out the payment of interest, and the division of profits is used instead. Such banks are already available in a number of Islamic countries as well as in some Christian countries densely populated by Muslims, such as Britain and Russia. By the end of 2008, the total budget of Islamic banks reached $600 billion.
IBA has been rated by the world`s leading institutions as Azerbaijan`s best bank based upon all financial and economic figures since 2002.
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