Islamic Banking in the Financial Market of Kazakhstan

Topics: Sharia, Islamic banking, Bank Pages: 8 (2961 words) Published: June 21, 2013
Islamic banking in the financial market of Kazakhstan
Sadyk Batyrzhan, graduate
Karaganda Economic University by Kazpotrebsoyuz (Karaganda, Kazakhstan)

The Islamic financial system in comparison with the traditional Western system is very specific and has a number of distinctive features dictated by the requirements of Islamic law - Sharia, the sources of which are the Qur'an and the Sunnah (sayings and actions of the Prophet Muhammad). The peculiarity of the Islamic financial system is the presence of a number of specific prohibitions dictated by Shariah (Islamic law). The main prohibitions include: • Riba - the prohibition interest (usury);

• Gharar - a ban on the presence of an excess of uncertainty, chance and uncertainty of the contract; • Meysir - Prohibition of speculative behavior and taking excessive risks (gambling); • Haram - a ban on conducting and participating in illegal activities. Apart from the basic prohibition of the Islamic financial system is characterized by the following principles: • separation of risk - in Islam may not transfer the risk for cash (or other) fees from one party to the contract or other third party. All contractors are required to be (or corresponding to their participation) the extent to share the risks inherent in the transaction; • sanctity of contracts - performance of contractual obligations is the most important duties of the parties to the transaction; • money is considered only as potential capital, real capital, they are considered only after being invested in productive activities. [1] Islamic financial institutions in their activities using a range of financial instruments that are similar to those used by traditional financial institutions that satisfy the rules of Islamic law. Over the entire period of development of the Islamic financial system, Muslim jurists and financial experts have developed a great variety of financial instruments, but in practice, there are only a part of them. In the last five years began actively discussing the possibility of the use of Islamic finance in the economy of Kazakhstan. Among the Kazakh financial institutions BTA Bank was the first to use Islamic financial instruments, starting cooperation with the Islamic Development Bank in 2003. Based on the results of the meetings of the working group of the Association of Financiers of Kazakhstan, the first in November 2008 with the participation of the FSA, the NBK and other government agencies, it was decided to issue a draft law "On amendments and additions to some legislative acts of the Republic of Kazakhstan on the organization and activities of Islamic banks and Islamic finance "in the Majilis. The working group was held financial institutions, experts from the United Arab Emirates, Malaysia and other countries. In early February 2009 The President signed the bill. The Law introduces amendments to the Civil Code of the Republic of Kazakhstan (Special Part), the laws of the Republic of Kazakhstan "On Banks and Banking Activities in the Republic of Kazakhstan", "On the Securities Market", "On Investment Funds", "On State Registration of Rights to Real Estate and deals with it. " [2] The main objectives of the amendments are as follows:

1) establishing the legal framework and characteristics of Islamic banks; 2) legislative recognition of forms and methods of state regulation and supervision of Islamic banks; 3) determination of the list and order of Islamic banking, a ban on the implementation of traditional banks Islamic banking operations; 4) establishment of a forced liquidation of the features of Islamic banks; 5) determination of the issue and circulation of Islamic securities; 6) establishing the legal framework and characteristics of Islamic investment funds. In particular, the law amended to the Civil Code, particularly the sale of goods by an...
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