Sber Joins Islamic Banking Experiment

16 November 2023

The Central Bank of Russia has added Sberbank to the list of participants in the experiment on partnership (Islamic) financing, according to materials from the regulator.


"On November 15, 2023, the Bank of Russia decided to include the public joint-stock company Sberbank of Russia (Moscow) in the register of participants for the experiment to establish special regulation. This aims to create the necessary conditions for the implementation of activities on partnership financing," the statement reads.


In October, the list of participants included only three organizations: Ak Bars Bank, Getap LLC, engaged in activities to organize investment attraction, and management company Ak Bars Capital.


About the law


The law allowing the start of an experiment on partnership (Islamic) financing in four regions of the Russian Federation came into force on September 1, 2023. The experiment is planned to be conducted in four Russian regions within two years. In the future, the territory and term of the experiment may be expanded by the Russian government in coordination with the Central Bank.


Islamic banking involves conducting business in accordance with the norms of Islam. Practices such as the payment of interest (riba) and derivative interest transactions, transactions with conditions of uncertainty (gharar), as well as financing of certain sectors of the economy, such as gambling, pork, alcoholic beverages, tobacco production, weapons, and ammunition, are prohibited. It is not allowed to finance trade in any of the aforementioned sectors. Common operations in Islamic banking include installment plans, leasing, and equity financing.



GSV "Russia - Islamic World"

Photo: Sber

Based on materials from TASS