Yinchuan, China is expected to become center for Islamic finance

Regional party committee, government support for local commercial banks to provide Islamic banking business, and wishing to cause mainland China Yinchuan fight Islamic financial center.

December 24, the reporter from the Ningxia banks offer Islamic banking pilot launch ceremony was informed that the Banking Board for approval of Ningxia, Ningxia bank became the first pilot run of the Islamic banking financial institutions.

During the pilot, Ningxia banks to set up Islamic finance division, responsible for the Islamic banking business operations and management; establishment familiar with the teachings of Islam and Islamic commercial law experts, academics Ningxia Islamic bank financial advisory committee to examine the cause of Islamic financial products are developed by the Department of Shariah-compliant.

The first choice in Ningxia Wuzhong branch banking, the square sub-branches, bright sub-branches, Xinhua West Street branch and the Metro branch of the establishment of Islamic financial services window, the majority of customers of Islamic banking products and services.

The pilot will initially be launched investment accounts (deposits), financial management and increase trade in 3 products.

It is understood that the Islamic banking and conventional banking, the difference is that: first, to follow the teachings of Islam; followed by emphasis on risk-sharing, profit sharing, product revenue is designed to rental income and profits in the form of sharing rather than interest; 3 is the product and services are based on tangible assets, the transaction must have a practical purpose, better able to evade the impact of financial market volatility, and the economic bubble of false prosperity and effective boycott; 4 is to fulfill contractual obligations and the disclosure of information enshrined in the responsibilities, engage in Islamic banking financial institutions are equipped with specialized agencies of financial institutions abide by the teachings of monitor the situation.

According to British “Banker” magazine reported in 2008 registered in Islamic financial institutions worldwide had reached 614, operational control of the assets of 639.1 billion U.S. dollars.

Which is China’s Ningxia Hui neighborhood, there are 2.2 million Hui people, the country’s total Muslim population, 1 / 5. At the same time, our region has to provide Islamic banking services needed a good cultural, political, economic base. With the Islamic business and further development, our region’s economic and trade exchanges with the Middle East, Muslim countries, in-depth, will attract more money into the Middle East, the western economic development.

Source : Xplus