16:24, 12 April 2016 Page views 3250 views

Tatarstan and Central Bank work to introduce Islamic banking in Russia

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According to President of Tatarstan Rustam Minnikhanov, the Central Bank of the Russian Federation and the government of Tatarstan have drafted a road map for the implementation of Islamic banking in Russia.

“The sanctions imposed by the European Union and the United States have forced us to look for new opportunities to attract investment into the country, including options that involve instruments of Islamic banking. A few days ago the first deputy chairman of the Central Bank held the meeting of a working group in Kazan, established on my initiative, and we spelled out a road map showing how we should move forward in this direction”, - Minnikhanov said.

According to him, the possibility to use Islamic banking is currently studied in Russia. This work includes, inter alia, preparation of legal documents, which would make the banking business conducted under the laws of Islam attractive in Russia.

As the head of Tatarstan explained, there are two institutions already in Russia, which work according to the rules of Islamic banking, but so far, the legal framework has made the Islamic financing less attractive in comparison with conventional banking.

Minnikhanov added that the working group stays in touch with the Islamic Development Bank and other international Islamic banking institutions, and also studies the experience of Kazakhstan that started establishing the Islamic finance institutions earlier than Russia did.

Source: PLUSworld.ru

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