Azerbaijan, Baku, Oct.14 / Trend, N. Ismayilova /
Azerbaijan's Nikoil Bank has finalized the development of a new Islamic banking product, Senior Manager Anar Yusufzade told Trend on Friday.
"The bank completed development of the new Islamic banking product, which will be a time deposit. Work is underway to coordinate its entry into the market," he said.
Yusufzade said the exact date of the product's entry onto the market is unknown, but it will launch after the coordination process ends.
The only Islamic banking product in the market is Nikoil Bank's "Wadia yad Daman," which is a savings deposit that does not bear interest, and funds from the account may be withdrawn at any time. The bank brought the product to the market in May.
Nikoil Bank began providing Islamic banking services in 2011. Previously, Amrahbank, Turanbank and Texnikabank announced the intention to provide Islamic banking services.
Nikoil Bank has been operating in Azerbaijan since 1997 after the founding of the Nikoil Azerbaijan Investment Company. Since 1998, AIC Nikoil has been a shareholder of the Ulpar commercial bank. Topaz Investments purchased a controlling stake in Nikoil AIC in 2008. Nikoil Bank's shareholders are: Topaz Investments - 53.1 percent; CAIC Nikoil - 28.7 percent; Uralsib-Invest - 13.9 percent; and the ISR Holding - 4.3 percent.
The official exchange rate is 0.7869 manat to $1 on Oct.14.