Central Bank: Application of Islamic banking in Azerbaijan can boost country's economic development

The global economic crisis has forced to look though the new financial system once more, and in this sense, the harmonization of Islamic financial instruments will prevent speculation in financial markets, of the Azerbaijani Central Bank chairman Elman Rustamov said at the 5th Global Forum on Islamic Finance of the Islamic Development Bank on the topic "Global stability on the way to integration" held in Baku.

"We also need to build stability in the banking sector based on the mechanisms of the Islamic banking",  Rustamov said.

He said at present Islamic banking has brought to the forefront and is being implemented in many countries. In terms of crisis, the assets of Islamic banks have increased by 30% over the past year and are expected to reach one trillion dollars by late 2010, which is 11% of the total capital of the world. During the crisis attention to the Islamic financing mechanisms has increased.

"Using the Islamic methodology in the banking sector, we can achieve further success of economic development in Azerbaijan. This methodology should be developed based on sound principles of the Islamic banking and Azerbaijan has been closely monitors these processes, and when the global context in this plan will be achieved, we will also use non-traditional banking mechanisms in our country," Rustamov added.

The Global Forum is held under the 35th annual meeting of the IDB Board of Governors, which will be held June 23-24 with the participation of ministers of finance, economics and planning of the Bank's 56 member countries.


/Trend/