BAKU, Azerbaijan, December 26. The Central Bank
will test several innovative products under its special regulatory
regime as part of ongoing efforts to organize and manage activities
within this framework, Trend reports, citing the Central Bank of Azerbaijan
(CBA).
According to the bank, the evaluation process of 14 applications
submitted during the second admission cycle of the special
regulatory regime has been completed, resulting in the selection of
four innovative products deemed suitable for testing under limited
conditions.
The products to be tested under the special regulatory regime
are as follows:
- A Murabaha product within the framework of Islamic banking
submitted by ABB OJSC;
- Mudaraba and Murabaha products within the framework of Islamic
banking submitted by Rabitabank OJSC;
- A product titled “Acquisition of voluntary insurance products
through gift vouchers” submitted by PASHA Insurance OJSC;
- The “BITAZN cryptocurrency exchange” product submitted by
BITAZN LLC.
The selected products will be tested for a period of 6 months
within a limited framework and under the supervision of the Central
Bank.
The special regulatory regime is designed to facilitate the
introduction of innovative services and products to the market,
enhance financial inclusion in the country, and further improve the
safety and accessibility of financial services for users.
To note, Mudaraba and Murabaha are two distinct, essential
Shariah-compliant financial contracts used in Islamic banking as
ethical alternatives to conventional, interest-based financing. The
primary difference is that Murabaha is a cost-plus sale contract
(debt-based), while Mudaraba is a profit-sharing partnership
(equity-based).
More detailed information on the special regulatory regime and
the products undergoing testing is available via the following
link: https://sandbox.cbar.az/az/registry
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