IBA to introduce Islamic banking in Azerbaijan

| Thursday, October 22, 2009
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.

1 Comments:

Yasar Guirguis said...

This expansion of the International Bank of Azerbaijan (IBA), to put Islamic banking is a great opportunity. Chairman Jahangir Hajiyev is very responsive to the needs of the area and a very smart and honest businessman. Mr. Hajiyev and IBA invests in Azerbaijan and provides positive economic opportunity. Chairman Hajiyev is bringing capitalist reforms to Azerbaijan.

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