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30 March 2016

The Centre of Partnership Banking opened in Kazan

The Centre of Partnership Banking opened in Kazan

The Centre of Partnership Banking was opened in Kazan. “Tatfondbank” project will provide for non-interest credit financing which is widely spread in the Muslim countries all over the world. This is due to usurocracy being one of the major sins according to Islam.

A number of guests of honour attended the opening ceremony. Among them were the president of the Tatarstan Republic Rustam Minnikhanov, the chairman of the Spiritual Board of the Tatarstan Republic and mufti Kamil Samigullin, the senior vice-president of the Russian Central Bank Aleksey Simanovsky and “Tatfondbank” chairman Robert Musin.

In his interview to “Realnoe vremya”, Musin explained that the project is not to be narrowed down to the Islamic finances only as all the Abrahamic religions forbid interest rate transactions.

“All the world religions did not approve of the interest rate transactions. The first bankers made their profits on currency rates’ differences. This centre as well as the project itself is called “Partnership Banking” as it is not only to do with the Islamic finances. Orthodox Christians have been always following these principles,” he noted.

The Centre of Partnership Banking opened in Kazan

The head of “Tatfondbank” told about potential advantages of the Islamic banking system. “It is common for a business to be strained because of the obligation to pay an interest rate to a bank every month. This is not that easy. As for the Islamic banking, it implies the effective work of a project team which would be able to evaluate a project and the potential profits it might produce. If the evaluations are made correctly and a business is permitted to receive the money it needs, it would not need to pay back monthly. This is very important. I believe the main advantage of this system is a business process. Yet, the profits which the banks alike make all over the world are not less than those of the others,” noted Musin.

In his speech, the president of the Tatarstan republic Rustam Minnnikhanov pointed out the importance of such a customer service which would operate in full compliance with both the national legislation and Islamic values.

“We should form a customer service which would, first of all, comply with the Russian banking legislation and secondly, would not contradict to the Islamic banking,” he claimed.

There are financial institutions which function in accordance with the Sharia regulations in Russia. They are financial house “Amal” and “LaRiba Finance” in Dagestan.

The Centre of Partnership Banking opened in Kazan

At the moment, Islamic banking is developing in Russia. The Russian economy has been interested in attracting investors from the Middle East and Gulf countries within the last few years. As a rule, these investors aim at investing exceptionally in halal industry.

It is important to note that the bank assets of Islamic banking worldwide are estimated as 1-2 USD trillions.