Russia introduces the Islamic banking system, commencing September 1.
While there are banks that cater to Russia large Muslim population, which numbers around 25 million people, this is the first time that the Russian government has officially supported this type of Islamic banking.
Russian President Vladimir Putin signed a law on August 4. The law aims to test whether this new banking method is feasible and practical.
The test program will initially begin in the four Muslim-majority regions of Tatarstan, Bashkortostan, Chechnya and Dagestan. These locations have some previous expertise in Islamic financing. The aim is to roll out this new way of banking across the nation if the test program is successful.
A significant change in financial inclusion can be seen in Russia’s entry into Islamic banking. Serving diverse populations is important, and if successful, it can serve Muslim communities as well as serve as a model for other countries looking to implement inclusive banking systems.
