Azerbaijan identified as a regional hub for Islamic banking introduction on CIS area

Baku, Fineko/ The IV Baku International Banking Conference under the aegis of the CIS Financial & Banking Council (FBC) has ended in Baku today. The last session was devoted to Islamic banking.

Following the event results the FBC Coordinating Council’s chairman Andrey Kazakov took the initiative to choose Azerbaijan the regional center on Islamic banking introduction on the CIS area.

“We’ll also ask the International Bank of Azerbaijan to form and lead a the FBC working group to prepare introduction of Islamic banking in the CIS banks. Today, the CIS banks are lacking liquidity, while the Islamic financial institutions have excess liquidity, and development of Islamic banking can be a tool for tackling liquidity problems,” Kazakov said.

In turn, the head of the IBA Islamic banking group Behnam Gurbanzade has said that the IBA has every opportunity to become a regional center for development of Islamic banking.

“Last week we completed with our consultants an analysis of tax and banking legislation and defined six Islamic instruments, introduction of which does not require legislative changes. If our initiative is backed by the Central Bank, we’ll continue initiating adoption of laws for development of Islamic banking,” he said.

The IBA established its working group in 2009.