Russian Deputy Finance Minister confirms extension of Islamic banking within the nation

Russia – Russian Deputy Finance Minister Ivan Chebyskov confirmed that the trial of implementing Islamic banking companies in Russia, which was solely scheduled for 2 years, will likely be prolonged.

Talking on the Eurasian Improvement Financial institution Enterprise Discussion board, the Deputy Minister added: “The pilot program was designed for 2 years, however we have now already determined that we are going to prolong the validity of this program, and we’re already occupied with implementing it comprehensively all through Russia.” In lower than a 12 months, we have now gained sufficient expertise and affirmation that these instruments have to be utilized below the legislation all through the nation.”

In the beginning of September final 12 months, the Islamic Banking Legislation entered into drive this 12 months within the Russian republics with a Muslim majority, the place it’s present process a pilot part for offering companies earlier than being circulated all through the nation.

The experiment was applied for 2 years within the republics of Dagestan, Chechnya, Bashkiria and Tatarstan. The expertise consists of making use of banking and financing exercise in accordance with Islamic requirements. On this monetary mannequin, traditional loans will not be issued with curiosity and different kinds are used (interest-free installments, leasing, fairness financing).

The Deputy Minister stated: “We notice that conventional finance has its limits, and has its issues by way of ethics, accountability and sustainability. Due to this fact, financing have to be constructed on different ideas as effectively. Right here we see Islamic finance as a sort of very best normal for the way to finance sustainably and responsibly on this planet. Certainly we see that residents, even those that belong to different completely different religions, want accountability, and wish to grasp that they’re financially concerned in some steady enterprise. “The curiosity right here is far broader than we anticipated.”

The Deputy Minister famous {that a} particular mechanism has been created below which firms wishing to interact in one of these financing and provide such monetary merchandise have to be included within the register of the Financial institution of Russia.

Supply: RT