State-owned RSK Bank of Kyrgyzstan has received a license to conduct operations on the Islamic principles of financing, a statement issued by the main financial regulator of the republic on Thursday reads.
"The Board of the National Bank of the Kyrgyz Republic decided to issue a license to the RSK Bank OJSC for the right to conduct banking operations in accordance with the Islamic principles of banking and financing through the Islamic window," the statement said.
Islamic financing principle implies equity participation of the bank in the enterprise, rather than lending to the borrower. At the same time, there are a number of restrictions. In particular, it is forbidden to invest in projects that contradict the Islamic principles. For example, the ban applies to alcohol, pork and so on.
RGC Bank is allowed to conduct these operations in both local and foreign currency.
In Kyrgyzstan, there are several banks with a majority share of the state in the authorized capital. The RSK Bank is the largest of them.
GSV "Russia - Islamic World"
Photo: AmanovDmitry/Creative Commons 3.0
Based on materials from TASS