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Iraq planning Islamic finance expansion
June 14 2011
The Iraqi Ministry of Finance and the Central Bank of Iraq jointly announced plans under which two state banks will begin to provide Islamic banking services
The Ministry of Finance (MoF) is allocating $42 million from the 2011 Budget to allow the state-controlled Rafidain Bank and Rasheed Bank to develop Islamic finance offerings. Rafidain Bank is the largest bank in Iraq with 147 domestic branches and eight abroad. Rasheed Bank is the second largest bank in Iraq. The two have a dominant position in the Iraqi banking sector which, according to the central bank, presently consists of seven state-owned banks, 23 private conventional banks and eight Islamic private banks. Nine foreign banks have presence in Iraq
A statement on the MoF website on 5 June said that work to introduce Shari’ah-compliant banking services at Rafidain and Rasheed would begin in the next two weeks.The funds being made available for this will be split equally between the two institutions.
Islamic finance currently accounts for up to 25 per cent of banking activitiy in Iraq. The central bank is now said to be working on a draft law to regulate Islamic finance. The sector is currently governed by temporary regulations.
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June 14 2011
The Iraqi Ministry of Finance and the Central Bank of Iraq jointly announced plans under which two state banks will begin to provide Islamic banking services
The Ministry of Finance (MoF) is allocating $42 million from the 2011 Budget to allow the state-controlled Rafidain Bank and Rasheed Bank to develop Islamic finance offerings. Rafidain Bank is the largest bank in Iraq with 147 domestic branches and eight abroad. Rasheed Bank is the second largest bank in Iraq. The two have a dominant position in the Iraqi banking sector which, according to the central bank, presently consists of seven state-owned banks, 23 private conventional banks and eight Islamic private banks. Nine foreign banks have presence in Iraq
A statement on the MoF website on 5 June said that work to introduce Shari’ah-compliant banking services at Rafidain and Rasheed would begin in the next two weeks.The funds being made available for this will be split equally between the two institutions.
Islamic finance currently accounts for up to 25 per cent of banking activitiy in Iraq. The central bank is now said to be working on a draft law to regulate Islamic finance. The sector is currently governed by temporary regulations.
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