Tatarstan and Bashkiria included to pilot Islamic banking testing

Tatarstan has been included to the list of Russian pilot regions where an Islamic banking project will be launched in test mode in 2023. Chairman of the State Duma’s Committee for Financial Market Anatoly Aksakov claimed this at a panel discussion Regulation of Financial Market to Transform and Develop the Economy during Kazan Digital Week.

“I want to tell Mr Minnikhanov pleasant news: Tatarstan has been added to the number of pilot regions to fulfil Islamic banking ideas,” he said.

According to him, a dedicated bill of the Central Bank is already made changes.

“Tatarstan and Bashkortostan are included to the bill right now, at this minute, and will operate next year [in test mode],” he said.

So Islamic banking will be tested next year in five regions, including Chechnya, Dagestan and Ingushetia.

It should be reminded that in early August the Bank of Russia said an Islamic banking pilot project would launch in 2023. Firstly, only 2-3 regions were included in it. The project earmarks financing by special organisations according to Sharia terms — no interest and deals with options and futures. The State Duma will consider bills on partnership financing in autumn.

The Tatarstan authorities already claimed they were ready for it. Vice Premier and Minister of Economy of Tatarstan Midkhat Shagikhametov noticed that the development of Islamic financing had been paid close attention in the region for many years.