GTB 737 banner Yudala banner

CBN moves to boost Islamic banking

By Chijioke Ohuocha on 24/08/2017

Share on facebook Yahoo mail icon Gmail icon

Views: 349

•CBN Headquarters
•CBN Headquarters

Nigeria’s central bank said on Thursday it is setting up two financial instruments to provide liquidity support to its non-interest paying lenders.

It is a push by Nigeria, home to the largest Muslim population in sub-Saharan Africa, to establish itself as the African hub for Islamic finance, which follows religious principles such as bans on interest and gambling.

The central bank has been working to set regulatory ground rules for such things as Islamic bonds (sukuk) and insurance (takaful) to try to emulate the success of the industry in Malaysia.

Nigeria’s banking industry is dominated by lenders offering conventional products.

Islamic banking is currently offered by the Islamic window of Sterling Bank, Stanbic IBTC, a unit of South Africa’s Standard Bank, and Jaiz Bank, a full-fledged Islamic lender which has operated since 2012.

But Nigeria wants to increase the sector.

“In a bid to aid liquidity management and deepen the financial system, the central bank hereby introduces two new financial instruments ... for access by non-interest financial institutions,” the central bank said in a circular.

Nigeria is gradually opening up to Islamic finance to bring non-interest banking to over 80 million Muslims and develop one of Africa’s growing consumer and corporate banking sectors.

In October the regulator granted liquidity status at its discount window for banks’ investment in Islamic bonds issued by national governments, and for banks’ liquidity ratios.

Among other conditions, it said non-interest lenders must have a liquidity problem to be able to access the new window – which will offer liquidity at zero interest, although lenders will be required to post collateral.

If a lender is unable to repay the funds, the central bank will discount the collateral at maturity, the regulator said in the circular.

Islamic banking products, which are compliant with Islamic sharia law, do not charge interest on financing. Profits or losses are instead shared with the borrower, meaning they discourage unnecessary speculation and spread risk.

Nigeria launched a 100 billion naira ($318 million) debut sovereign sukuk in the local market in June to help develop alternative funding sources for government and to establish a benchmark curve for corporates to follow. (Reuters)

Source News Express

Posted 24/08/2017 8:21:53 PM

 

Share on facebook Yahoo mail icon Gmail icon


 

CLASSIFIED ADS

Let us build the most comprehensive online database of worthy and credible Nigerians from all walks of life. It is worth doing!

Loss Off Your Belly Fats, Upper Arm Fat and Body Fats In 2weeks Time.. Click HERE To Start Now!

 

You may also like...
FRSC warms up to conduct psychological test on...

Economic recession: Oil majors devise survival strategies

Alleged N1.2bn Fraud: Court grants former FCT Minister’s...

136 Nigerian policemen honoured in Somalia

Militants claim capture of 24 soldiers •It’s not...

Why the Ikwerre are supporting Peterside —Beke

River of floating corpses: Obi saved us from...

Senate clears air on amendment of CCB/CCT Law,...

Akeredolu constitutes committee to recover govt. vehicles

Lagos closes Ilupeju Public Library for renovation

Finally unmasked: The man who made satanic film...

NAF provides new facilities in Kano, Rivers

 

Latest News IPOB not a terrorist group — U.S. Government Troops, NDLEA operatives raid, recover arms from suspected drug baron in Abia Borno Governor redeploys 41 permanent secretaries IG warns new recruits against corruption APC endorses Buhari, Masari for 2019 FG vows to tackle electricity supply challenges NPA directs road contractor to improve performance Rivers APC dismisses Ikanya’s alleged suspension Ghanaian subsidiaries of Tigo, Bharti Airtel cleared for potential merger Rains likely today over Abakaliki, Port Harcourt, Calabar, Eket, Enugu, Obudu and Ikom WAFU Cup Final: Dalung leads delegation to Ghana It’s too late to actualise Biafra — Igbo member of Lagos State House of Assembly

 

Most Read Nigerian female sex addict opens up, says ‘I like it with both men and women’ (279,213 views) NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (260,974 views) Shameless Genevieve Nnaji exposes breasts in public (211,878 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (178,077 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (176,924 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (158,740 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (136,963 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (126,881 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (120,549 views) Lagos plane crash: Journalist releases victims’ names (111,324 views) Gunmen kill ASP, 2 other police officers in vain bid to kidnap Rivers PDP chieftain (110,486 views) APC cries foul as PDP’s Fayose takes early lead in Ekiti governorship election (102,896 views)

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (28) Business (2,695) Business Verdict (22) Columnists (745) Complaints & Requests (93) Enterprise & Opportunities (178) Entertainment (378) Features (489) Global Business Monitor (178) International (1,545) Interviews (130) Live Commentary (28) Love Matters (73) News (28,648) Opinion (809) Pidgin (8) Politics (3,939) Religion (627) Sports (1,324) Stock Watch (23) AMA & Al Jazeera Global Update

 

UBA mobile app

CBN words on marble advert

 

 

Manchester United vs Everton 4-0 All Goals & Extended Highlights

 

APO Newsbreak logo

 

CLASSIFIED ADS

Loss Off Your Belly Fats, Upper Arm Fat and Body Fats In 2weeks Time.. Click HERE To Start Now!

Let us build the most comprehensive online database of worthy and credible Nigerians from all walks of life. It is worth doing!

GOCOP Accredited Member

GOCOP Accredited member

 

 

Africa Media Agency and Al Jazeera

Advertisement



 

 

CLASSIFIED ADS

Let us build the most comprehensive online database of worthy and credible Nigerians from all walks of life. It is worth doing!

Loss Off Your Belly Fats, Upper Arm Fat and Body Fats In 2weeks Time.. Click HERE To Start Now!