Baku, Azerbaijan, Feb. 10
By Emin Aliyev - Trend:
By end of the 2014 International Bank of Azerbaijan (IBA) is planning to double Islamic financing operations, IBA Islamic banking department head Behnam Gurbanzade said in an interview with Azernews newspaper on Feb. 10.
"The financial portfolio of the IBA department currently amounts approximately to $200 million," he said. "By end of the 2014 International Bank of Azerbaijan (IBA) is planning to double Islamic financing operations and increase Islamic banking assets to $400 million."
"Despite the rapid expansion of Islamic banking in Azerbaijan, reforms in the legislation are needed to spur the growth of the industry further," he said.
"The adoption of the legislation in the sphere of Islam Banking will affect in a better opportunity to create a more even environment with conventional banks as well as giving a chance of introducing full range of Islamic Banking products to the customers," he said. "Introduction of new products will result in a growth of the market share of Islamic Banking as well as expanding a list of Banks customers."
IBA started rendering Islamic banking services in 2003, becoming the first in the country's banking market. The bank has been providing services in this sphere with the resources attracted from the Islamic Development Bank group.
Last year a consortium of Salans, KPMG, Pinsent Masons and Dar al Shariah companies was assisting IBA in the creation of a specialized structure for rendering products and services of Islamic banking.
The IBA was founded in January 1992 as the successor of the Vnesheconombank's Azerbaijani branch. The IBA holds the dominating position in the country's banking sector.
The bank's main shareholder is the Azerbaijani government which owns a 50.2 percent share.
The remaining shares of the bank are owned by private individuals and legal entities.
Translated by NH
