Azerbaijan, Baku, Dec 2 /Trend N.Ismayilova/
The International Bank of Azerbaijan (IBA) plans to expand its activities in two main directions: Islamic banking and retail banking in 2012, IBA chairman Jahangir Hajiyev told Trend on Thursday.
"The bank has already completed internal preparations for the implementation of Islamic banking products. We are also in close consultation on this matter with the Central Bank of Azerbaijan," Mr Hajiyev said.
IBA consultants for introducing Islamic products and services Salans, KPMG, Pinsent Masons and Dar al Shariah estimated using about 50 Islamic banking tools, primarily focusing on the corporate sector.
Legislation allows the introduction of five or six Islamic tools without changing the regulations during the first stage of the Islamic banking project, if the Central Bank of Azerbaijan will provide IBA authorisation to conduct such operations. The Bank intends working on the second stage of the project based on the outcome of the success of its first products in the future, in which case it may be necessary to amend the legislation.
According to Mr Hajiyev, the second direction of the bank in 2012 will be a large retail business development and parallel with it the bank will continue to develop other areas.
"The retail sector isn't developed enough, so the IBA has big plans for its development, "he said "The development of new products is now in place and on the market such as gold deposits."