BAKU, Azerbaijan, October 22. The Central Bank
of Azerbaijan (CBA) has prepared and submitted to the government a
legislative package incorporating the fundamental principles of
Islamic finance and covering five key products, three on the asset
side and two on the liability side, CBA Director General Shahin
Mahmudov said at the third Islamic Finance Forum on Thursday,
Trend's correspondent
reports from the event.
He said the package aims to establish clear rules for market
participants, ensure legal certainty, provide an appropriate
framework for risk management and protect consumer rights.
“We believe that the most important factor in building a
sustainable market is establishing a sound, predictable and
transparent legislative environment. Our second priority is
ensuring competitive neutrality between Islamic finance and
conventional banking. We do not believe that transactions with the
same economic substance should be subject to different taxes or
fees solely because their legal or contractual forms differ.
For this reason, tax and fee neutrality, the harmonization of
relevant legal procedures, and the integration of Islamic finance
products into the existing financial infrastructure are
particularly important. Integrating deposit insurance mechanisms is
also one of the essential conditions,” he said.
Mahmudov added that Islamic finance requires new knowledge and
skills.
“The issue is not limited to Islamic banking. It also involves
developing professional skills in Islamic law, Islamic accounting
and risk management in Islamic finance. Therefore, strengthening
professional training through cooperation with educational
institutions, professional associations, financial institutions and
international partners is one of our key priorities,” he
stressed.
