Russia’s first bank, which will run according to Islamic principles of finance, is expected to make its debut by this year.
The bank would be created under the auspices of the Islamic Development Bank (IDB), reports Asia News.it citing reports from portal Banki.ru.
The bank is expected to be located in Tatarstan, which is a Muslim majority republic of the Russian Federation.
At present, a feasibility study is being carried out along with Tatar government representatives.
Association of Regional Banks of Russia president Anatly Aksakov highlights two options for opening the Islamic bank, with one possibility including the direct creation of an Islamic bank.
The other option includes setting up an Islamic section in an existing structure, which would operate in compliance with sharia and Islamic banking priniciples.
Aksakov also pinpointed on Malaysia’s intention of participating in the project.