Legal regulation of Islamic banks in Russia

• Main Authors: O A Yastrebov, A R Batyaeva, A A Hajiyev
• Format: Article
• Language: English
• Published: Peoples’ Friendship University of Russia (RUDN University) 2015-12-01
• Series: RUDN Journal of Law
• Subjects: исламский банкинг; законы шариата; структура и особенности; проценты; динамичный рост; правовое регулирование исламских банков; банкинг
• Online Access: http://journals.rudn.ru/law/article/view/5759

Forty years ago in the Islamic states of banks (credit institutes in our understanding) wasn’t since laws of Sharia consider issue of money under percent a grave sin. Now in the world there are more than 300 Islamic banks, their general assets exceed 500 bln. dollars of the USA with a growth from 10 to 15 percent a year (data of UBS Swiss Bank which opens at itself Islamic department). According to Sharia, the Islamic bank can’t invest money in some forbidden types of activity: production and sale of alcohol, gaming houses, and other restrictions of an ethical sort. Islamic banking is fundamentally oriented to real economy, to real production and to allowing for speculation. One of the interfering factors influencing implementation and development of Islamic banking in Russia is the low awareness of professional participants of the financial market, and also the population in general, about structure and the principles, functioning of the specified banking. The potential base of clients in Russia is, and the first experiences confirm it. However, the problem can be solved adjustment of the Russian legislation, creating thereby favorable conditions, both for local, and for foreign investors for implementation and promotion of an Islamic bank system. Creation of the relevant coordinating structure and mutual tolerance is required.