A new draft law is being developed in Uzbekistan to establish Islamic banking activities. This was reported by Zamin.uz.
The Bankir publication reported on this. Several political parties discussed this draft law during their faction meetings.
According to the Uzbekistan Liberal Democratic Party, although current legislation prohibits commercial banks from engaging directly in trade, this practice is widely applied in Islamic banks. In the Islamic finance system, financing is carried out on a partnership basis.
At the same time, current laws restrict commercial banks from establishing legal entities or participating in charter capital. According to information from the National Revival faction, 68 percent of Uzbekistan's population does not want to use traditional banking services.
This indicates the need to improve legislation. The new draft law aims to create a legal framework for Islamic banking activities in accordance with international standards.
Thus, it is planned to create favorable conditions for the diversification of financial services and the development of the Islamic finance system in the country. Source: Bankir.
