Kazakhstan-Almaty: Bonki Rushdi Tojikiston (BRT) has signed an advisory services agreement with the Islamic Corporation for the Development of the Private Sector (ICD), the private sector arm of the Islamic Development Bank Group ("IDB"), in order to process and support its conversion to full Shariah compliant operations.
The agreement is designed to develop an advisory process in order to efficiently and effectively deliver full conversion: including to identify challenges and address impediments to this mutual collaboration. The ICD will dedicate seven key teams across the full conversion process: including in the areas of project management, Shariah compliance, treasury, accounting, human resources, information technology, marketing and legal framework.
Mr. Khaled Al Aboodi, the CEO of ICD commented: "We are delighted to be supporting one of the leading banks in the sector in its initial move towards Islamic operations, and believe that this will open the door to numerous other operators identifying the opportunities inherent in the Shariah compliant financial system."
The Chairman of the Supervisory Board of CJSC "Bonki Rushdi Tojikiston ", Mr. Tojidin Pirzoda said in his interview that Islamic banking was one of the positive methods of products and services of any bank. It is especially necessary to emphasize the enormous contribution of the Islamic Bank for lending to small and medium-sized businesses of the population.
In Dushanbe, 26-28 October 2014, the management of CJSC "Bonki Rushdi Tojikiston " has decided to adopt the principles of Islamic banking. "Bonki Rushdi Tojikiston " is hoping to become the leading platform in Tajikistan to provide customers with a bank of new banking products, which provides a ban on charging interest. The bank is studying the experience in the implementation of the principles of Islamic banking in the banking systems of the European Union, the USA, China, Russia, Azerbaijan, Kyrgyzstan and Kazakhstan.
Practice shows that in spite of the existing demand for Islamic banking products, they are not sufficiently represented in the banking system of Tajikistan. Currently, the majority of Tajik banks are interested in work on the principles of Islamic banking. Presently, Tajik banks are willing to follow the principles of Islamic banking.
It is worthy to mention that on July 26 2014 the Law of the Republic of Tajikistan "On the Islamic Banking" was adopted in the Republic of Tajikistan. In addition, the National Bank of Tajikistan has established a working group that develops the draft amendments to several legislative and regulatory legal acts for the organization of the mechanism of regulation of Islamic banking. It is expected that this work will be completed by the end of the first semester of 2015.
About Bonki rushdi Tojikiston (BRT)
CJSC "Bonki rushdi Tojikiston" has been founded in 2006 and operates based on the National Bank of Tajikistan License (№NBT0000005 dated January 8, 2014). The Bank received its permission to hold banking transactions based on the National Bank Board of Directors' Resolution of September 19, 2006. Today Bonki Rushdi Tojikiston is represented in practically all regions of Tajikistan and currently operates 10 Branches (offering all services), 35 Centers of Bank Services (CBS) and 30 Exchange offices.
About the Islamic Corporation for the Development of the Private Sector (ICD)
The Islamic Corporation for the Development of the Private Sector (ICD) is a multilateral organization, part of the Islamic Development Bank (IDB) Group. ICD was established in November 1999 to promote economic development of its member countries in accordance with the principles of the Sharia through private sector development. ICD encourages the establishment, expansion and modernization of private enterprises through financing private sector enterprises or projects. Projects are selected on the basis of their contribution to economic development considering factors such as creation of employment opportunities and contribution to exports. ICD also provides advice to governments and private sector groups on policies to encourage the establishment, expansion and modernization of private enterprises, development of capital markets, best management practices and enhance the role of market economy. ICD operations complement the activities of the IDB.
© Press Release 2015
