Trial period for Islamic banking will start in Russia

The State Duma, the lower house of Russia’s parliament, approved the bill allowing trial use of Islamic banking in certain regions of the country.

With the bill approved by the parliamentary general assembly, the “legal test process” of Islamic banking, or in other words, participatory banking, can start in Tatarstan, Dagestan, Chechnya and Bashkortostan in Russia.

Accordingly, the trial period will be extended from September 1, 2023 to September 1, 2025, and the Bank of Russia will have the authority to expand the list of regions where the process can be started.

REACHED $7.7 BILLION GLOBALLY

The institutions that will participate in the trial process will not have the right to set interest rates, produce tobacco and alcohol products, market products such as weapons and ammunition, and finance activities related to games of chance, while they carry out banking operations. of participation.

While the ratio of Muslims to the total population in Russia is expected to reach 30 percent in 10 years, Islamic banking is also gaining popularity.

Oleg Ganeev, Sberbank’s Senior Vice President, said they expect the Islamic ecosystem market to be worth $7.7 trillion globally. (AA)