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Turanbank comppletes investigates on Islamic banking

04 November 2010 13:29 (UTC +04:00)

Baku. Vahab Rzayev â€“ APA-Economics. Following the module of the â€œuniversal bankingâ€, TuranBank also one of few banks in the country implementing elements of corporate finance for Sharia principles.

Currently the Bank has completed a full market analysis and investigation on "Islamic Banking" which gave the opportunity to develop the concept of the bank in this direction. According to the new concept, TuranBank plans to apply the retail direction for "Islamic Banking". The whole process of application for customer service in the bank will be carried out through the window of "Islamic Banking". Application in Â«TuranBankÂ» banking products and services on the principles of Sharia will be implemented in phases. As part of "Islamic Banking" will be primarily used for deposits services, management of clientele, some types of financing in the corporate and retail banking direction. Subsequently, the Bank will provide a full range of implementation as the existing practice and innovative banking products and services on the "Islamic Banking Windowâ€.

Certification of applicable products and services the bank will be confirmed by outsourcing company which will as as Sharia Council.

To date, there is a large number of Muslims who want to invest their financial resources in accordance to the principles of Islamic banking. In practice, both mediators and participants in the Islamic financial business jave become even large financial institutions of the World.

Currently the interesting fact is that there is a group of customers in the market who is potentially interested in Islamic Banking products. Given all this, and the fact that virtually no stable financial institution that could meet their demand, TuranBank planned to analyze all the possible use of products "Islamic banking" and open the "Islamic Finance Windowâ€.

In connection with the above mentioned, the bank intends to cooperate with IRTI (Islamic Institute of Research and Training, a group of Islamic Development Bank) and several other institutions of Gulf countries.

To date, TuranBank in the direction of Islamic finance is actively cooperating with the Islamic Corporation for Development of Private Sector (ICD, Islamic Development Bank Group) and the International Islamic Trade Finance Corporation (ITFC, Islamic Development Bank Group).
Funding under the lines provided above the international financial institutions by the Islamic banking product â€œMurabahaâ€.