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Advisory Council For Islamic Banking Services To Be Created In Kyrgyzstan

Wednesday, February 15, 2017 - 00:00

Kyrgyzstan intends to establish an Advisory Council for Islamic banking services, which will deal with the introduction and use of the principles of Islamic banking in the country. Head of the department of licensing and methodology of the National Bank Jyldyz Sulaymanbekova announced the news to the press, adding that a major role in promoting Islamic finance is played by the presence of a Sharia council at the national level or under the financial regulator.


“The purpose of the council is to provide advisory services to the country's financial regulator, as well as other government agencies. These services will relate to the issues of development of legal regulations and introduction of amendments to the legislation relating to the Islamic financing principles. All this is necessary to 'legitimize' the Islamic financial and banking products,” Sulaymanbekova said.


Currently, Tajikistan is the only CIS country that has such a body; it is called the Advisory Council for Islamic banking services. Worth recalling, on July 26, 2014, the republic asopted the Law “On Islamic banking activity.” Through the introduction of Islamic banking in the republic, the National Bank of Tajikistan expects to increase the trust of the population to its banking system. However, this activity is today hampered by the fact that the relevant regulation adopted by the Tajik agency have not yet been harmonized with international standards.


About 10 years ago, Kyrgyzstan was one of the first countries in the CIS to begin to work towards the introduction of the Islamic principles of financing in its financial system. Today, according to the National Bank, “EcoIslamicBank” and five micro-credit companies (including “Ak-Nur Capital” and “Bereke Finance”) provide financial services that fully correspond to the principles of Islamic finance.

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