Regulator announces Islamic banking project in Chechnya and Dagestan

The Central Bank of Russia has planned an experiment to develop Islamic banking in Chechnya and Dagestan; a pilot project will be launched in 2023.

The "Caucasian Knot" has reported that the introduction of Islamic banking in general in Russia and, in particular, in Northern Caucasus is unprofitable for classic banks; however, some projects can be implemented in the existing legal field, the participants of the "Russia-Islamic World" economic forum was held in Kazan in May 2018 stated.

The Central Bank of Russia plans to develop Islamic banking in Chechnya and Dagestan; the launch of a pilot project is scheduled for 2023, the "Interfax" reported on August 4, citing the press service of the regulator (the Central Bank of Russia).

"The issue is being worked out by the Ministry of Finance of Russia with the participation of the Central Bank of Russia, including the preparation of the necessary amendments to the legislation. The direct piloting in the territory of the constituent entities of the Russian Federation – the participants in the experiment – is expected in 2023," the "Interfax" has quoted the regulator's statement.

This article was originally published on the Russian page of 24/7 Internet agency ‘Caucasian Knot’ on August 4, 2022 at 11:04 pm MSK. To access the full text of the article, click here.