IBA to introduce Islamic banking in Azerbaijan
The International Bank of Azerbaijan (IBA), the
country`s leading bank, plans to introduce Islamic banking in the
South Caucasus republic, its board chairman, Jahangir Hajiyev, has
announced.
He noted, however, that the measure can be enacted no earlier than in 2010.
According to Hajiyev, the interest in banking based on Islamic canons is increasing the world over following the financial crisis.
The IBA board chairman emphasized that, currently, there is no bank in the entire Commonwealth of Independent States (CIS) properly enforcing Islamic banking laws, though the issue remains in the spotlight.
``In Russia itself, high-level discussions are underway on creating such banking,`` said Hajiyev.
He added that it remains to be determined whether Islamic banking will be applied independently or within the IBA.
Islamic banking refers to a system of banking that is consistent with the principles of Islamic law. Sharia prohibits the payment or acceptance of interest fees for the lending and accepting of money, as well as investing in businesses that provide goods or services considered a violation of its principles.
He noted, however, that the measure can be enacted no earlier than in 2010.
According to Hajiyev, the interest in banking based on Islamic canons is increasing the world over following the financial crisis.
The IBA board chairman emphasized that, currently, there is no bank in the entire Commonwealth of Independent States (CIS) properly enforcing Islamic banking laws, though the issue remains in the spotlight.
``In Russia itself, high-level discussions are underway on creating such banking,`` said Hajiyev.
He added that it remains to be determined whether Islamic banking will be applied independently or within the IBA.
Islamic banking refers to a system of banking that is consistent with the principles of Islamic law. Sharia prohibits the payment or acceptance of interest fees for the lending and accepting of money, as well as investing in businesses that provide goods or services considered a violation of its principles.
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