Uzbekistan's Central Bank drafts rules for licensing Islamic banks

TASHKENT. June 8 (Interfax) - The Central Bank of Uzbekistan (CBR) has presented for public discussion a draft resolution that will make changes and additions to a number of departmental regulations concerning the introduction of Islamic banking in the country.

The document has been posted on the website for discussing laws and regulations.

The CBU proposes to define the procedure for licensing banks that conduct Islamic banking activities.

Specifically, it establishes the procedure for issuing preliminary permits for the creation of banks that operate according to the principles of Sharia-compliant financing, and their state registration and licensing.

The document regulates the issue of licenses through the creation of a so-called "Islamic window." In addition, it establishes the mechanism for transforming a bank that operates according to the conventional model into a financial institution that operates completely according to the principles of Islamic banking.