THE growing Shariah compliant banking concept on Monday received another boost with medium tier
Islamic banking has since 2007 attracted two fully fledged, privately owned lenders--
The two purely Shariah compliant banks controlled 1.02 per cent of the 43-company industry assets, 1.15 per cent of deposits and 1.14 per cent of loans by end of last December, according to data from the
The CBK said in an emailed response to the Star that the legal and regulatory frameworks for Islamic banking market will be improved to facilitate its continued development.
The Islamic banks presently operate under the same frameworks as conventional banks.
The regulatory and legal landscapes, the chief lender added, are "continuous(ly) benchmarked to international best practices applicable to
Unlike conventional models, Islamic banking strictly adheres to investment principles based on risk-sharing and not risk-transfer.
The principles emphasises sharing of profits between banks and customers, safekeeping of savings, joint ventures, leasing, among other ethically acceptable concepts.
"From regulatory point of view, there should be a fine-tuning in the taxation regime to make the Shariah compliant products more amenable for the benefit of the industry and customers," director of research and policy at KBA Jared Osoro said in an interview on January
CBK however said taxation matters fall under the jurisdiction of
The regulator however said it was "liaising" with the Shariah banks and the
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