The State Duma has approved a law extending the experiment on Islamic banking, also known as partner financing, for three years until September 1, 2028. The legislation, initiated by a group of deputies and senators led by Anatoly Aksakov, Chairman of the State Duma's Financial Market Committee, aims to further refine the regulatory framework for partner financing.
The law expands the range of transactions allowed under the experiment, enabling participants to engage in mutual insurance operations, open and manage bank accounts for individuals and legal entities, and facilitate fund transfers. Additionally, the legislation outlines grounds for refusing or removing participants from the experiment's registry, including signs of financial instability.
The law establishes a mechanism for developing and approving partner financing standards, which will be created by the Association of Credit Organizations in collaboration with experiment participants. These standards will be submitted to the Central Bank of Russia for approval within its competence.
The Russian government will be responsible for setting monitoring indicators, based on which the Expert Council on Islamic Banking will conduct regular assessments. The council will then submit proposals to the government on potential changes to Russian legislation.
According to the explanatory note, the bill aims to ensure consistent application of partner financing rules, increase transparency, and enhance the attractiveness of these financial instruments for both domestic and foreign investors, including those from Organization of Islamic Cooperation countries.
Nikita Chaplin, a member of the Budget and Tax Committee, emphasized that extending the experiment is a crucial step in developing alternative financial instruments in Russia. "The experiment has provided businesses with new opportunities to attract investments without excessive bureaucratic pressure, while investors have gained additional mechanisms to protect their interests," he noted. "However, three years was insufficient to fully assess all aspects of this model. The new term will allow for a more thorough analysis of the mechanism's effectiveness, identification of potential risks, and refinement of regulations before scaling up nationwide."
GSV "Russia - Islamic World"
Based on TASS materials