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Vnesheconombank’s first deputy chairman: “Development of Islamic finance will contribute to bank system improvement”
For the last two years large Russian banks, including Vnesheconombank and Sberbank, have been closely examining the opportunities at the Islamic financial market, in particular those related to attracting foreign investment. Yesterday the first deputy chairman of Vnesheconombank, Nikolay Tsehomskiy, explained his stance as to Islamic finances in his interview to the RIA news agency.
The representative of Vnesheconombank noted that a greater interest to Islamic finance in Russia was provoked by the Western sanctions that made the Russian market players search for alternative ways to the capital market. According to Nikolay Tsehomskiy, “Islamic banking presents new opportunities for Vnesheconombank, both in terms investment activity funding and support of the Russian industrial export”.
He also noted that the new market development will encourage healthy competition at the Russian financial market and will contribute to the improvement of the banking system.
Vnesheconombank is currently focusing on a “product matrix” that would meet the needs of foreign investors from Islamic countries and the bank's clients. For that purpose, Vnesheconombank is establishing cooperation with the biggest players of the Islamic financial market, including the Group of Islamic Development bank, with whom a Memorandum on mutual understanding was signed in May 2016, and sovereign funds and largest banks of the UAE, Bahrain, Saudi Arabia, Malaysia and other countries.
Speaking about issues hindering Islamic banking development in Russia, Nikolay Tsehomskiy mentioned the absence of relevant legislation aimed at realization of Islamic financial products, infrastructure underdevelopment and lack of skilled staff. Certain hopes are set on the performance of the Working group for partnership banking under the Central Bank of Russia: “It is expected that instead of drafting new legislative acts the existing ones will be modified in such a way that the partnership banking tools will become equal to traditional banking tools, also in terms of taxing”, — noted the first deputy chairman of Vnesheconombank, whose members form a part of the Working group.
Source: MuslimEco based on RIA News materials