BAKU, Azerbaijan, June 3. Uzbekistan’s Central
Bank has unveiled a draft regulation that would establish licensing
procedures for banks engaged in Islamic banking, a significant step
in the country’s efforts to introduce and expand Shariah-compliant
financial services, Trend reports via the bank.
The proposed resolution, published on the government’s portal
for public consultation, would amend several existing regulatory
acts adopted by the Central Bank’s board. The initiative was
developed in accordance with a recently adopted law introducing
amendments to Uzbekistan’s legislation aimed at creating a legal
framework for Islamic banking.
Under the proposal, the Central Bank would define procedures for
granting preliminary authorization to establish Islamic banks, as
well as rules governing their registration and licensing. The draft
also outlines documentation requirements and standards that
applicants must meet when seeking approval to operate Islamic
banking institutions.
The regulation would provide a pathway for existing commercial
banks to enter the Islamic finance market by obtaining licenses to
offer Islamic banking services through so-called “Islamic windows,”
which allow conventional banks to provide Shariah-compliant
products alongside traditional financial services.
In addition, the draft sets out procedures for conventional
banks that wish to fully convert their operations to Islamic
banking. The framework would enable financial institutions to
transition from traditional banking models to exclusively Islamic
banking activities.
The proposal also introduces qualification requirements for
members of an Islamic bank’s Islamic Finance Council, commonly
referred to as a Shariah board, as well as for senior managers
responsible for overseeing Islamic banking operations.
The publication of the draft regulation marks another milestone
in Uzbekistan’s efforts to diversify its financial sector and
attract new sources of investment. Islamic finance has gained
increasing attention across Central Asia in recent years as
governments seek to broaden access to financial services and
strengthen ties with international Islamic financial
institutions.
Once adopted, the new rules are expected to provide the
regulatory certainty needed for the launch and expansion of Islamic
banking services in Uzbekistan, supporting the development of a
sector that operates in accordance with Islamic financial
principles while complementing the country’s existing banking
system.
