Title

The development of the Islamic Banking in Kyrgyzstan

Submission Type

Inaugural Session

Abstract/Description

Islamic Banking refers to a system of banking or banking activity which is consistent with Islamic Law (Shariah Law) and is guided by Islamic economics. Islamic law strictly prohibits the collection and payment of interest, also commonly called riba, trading in financial risk (gambling) and investing in haram business. The main role of Islamic Banking is to facilitate transferring of financial resources from surplus units to deficit units and, hence, helping to accelerate the pace of development by securing uninterrupted supply of financial resources to people engaged in economic activities. The growth and development of the Islamic finance must be accompanied by the corresponding development of the supporting legal, regulatory and supervisory framework to ensure its soundness and stability. The legal, regulatory framework are an important pillars in the development of Islamic finance for every country. Its objectives are to maintain confidence in the banking system, protect consumers and promote public awareness.

Session Chair

Dr. Aishath Muneeza, Associate Professor, INCEIF, Malaysia

Session Host

Mr. Muhammad Raza, Customer Support & General Services, Meezan Bank Limited

Start Date

30-5-2022 5:30 PM

End Date

30-5-2012 5:45 PM

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May 30th, 5:30 PM May 30th, 5:45 PM

The development of the Islamic Banking in Kyrgyzstan

Islamic Banking refers to a system of banking or banking activity which is consistent with Islamic Law (Shariah Law) and is guided by Islamic economics. Islamic law strictly prohibits the collection and payment of interest, also commonly called riba, trading in financial risk (gambling) and investing in haram business. The main role of Islamic Banking is to facilitate transferring of financial resources from surplus units to deficit units and, hence, helping to accelerate the pace of development by securing uninterrupted supply of financial resources to people engaged in economic activities. The growth and development of the Islamic finance must be accompanied by the corresponding development of the supporting legal, regulatory and supervisory framework to ensure its soundness and stability. The legal, regulatory framework are an important pillars in the development of Islamic finance for every country. Its objectives are to maintain confidence in the banking system, protect consumers and promote public awareness.