BAKU, Azerbaijan, December 26. The Central Bank will test several innovative products under its special regulatory regime as part of ongoing efforts to organize and manage activities within this framework, Trend reports, citing the Central Bank of Azerbaijan (CBA).
According to the bank, the evaluation process of 14 applications submitted during the second admission cycle of the special regulatory regime has been completed, resulting in the selection of four innovative products deemed suitable for testing under limited conditions.
The products to be tested under the special regulatory regime are as follows:
- A Murabaha product within the framework of Islamic banking submitted by ABB OJSC;
- Mudaraba and Murabaha products within the framework of Islamic banking submitted by Rabitabank OJSC;
- A product titled “Acquisition of voluntary insurance products through gift vouchers” submitted by PASHA Insurance OJSC;
- The “BITAZN cryptocurrency exchange” product submitted by BITAZN LLC.
The selected products will be tested for a period of 6 months within a limited framework and under the supervision of the Central Bank.
The special regulatory regime is designed to facilitate the introduction of innovative services and products to the market, enhance financial inclusion in the country, and further improve the safety and accessibility of financial services for users.
To note, Mudaraba and Murabaha are two distinct, essential Shariah-compliant financial contracts used in Islamic banking as ethical alternatives to conventional, interest-based financing. The primary difference is that Murabaha is a cost-plus sale contract (debt-based), while Mudaraba is a profit-sharing partnership (equity-based).
More detailed information on the special regulatory regime and the products undergoing testing is available via the following link: https://sandbox.cbar.az/az/registry
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