Kazakhstan’s largest bank moves to launch Islamic banking services

Shareholders of Kazakhstan’s largest bank by assets, Halyk Bank, resolved to obtain a license to conduct Islamic banking operations. The bank is also set to establish a council on Islamic financing principles.

At the general shareholders’ meeting on Sept. 25, Halyk Bank shareholders approved the resolution to obtain a license to conduct Islamic banking operations. The bank will also establish an Islamic Financing Principles Council.

The shareholders’ meeting also elected three members to the Halyk Bank Islamic Financing Principles Council. One of the members is Aznan Hasan, an associate professor at the Institute of Islamic Banking and Finance at the International Islamic University Malaysia (IIUM) and founding president of the Association of Shariah Advisors in Islamic Finance. He is also a member of banking councils in Bahrain and the UAE and of various organizations. He specializes in capital markets and sukuk.

Another member is Salim Al Ali, a specialist in Islamic finance law and regulation and legal aspects of the development of Islamic financial markets, and a lecturer at academic institutions across the U.K. and UAE. The third member is Aida Othman, a Malaysian specialist in Islamic banking law and financial regulation.

The council’s term is one year. The bank also adopted relevant changes to its charter.

Kazakhstan’s banks have been eligible to establish «Islamic windows» since Jan. 16, separate areas offering Sharia-compliant financial products.