Q FM Africa's Modern Radio
The Bank of Zambia has officially launched guidelines for regulating Islamic Banking in the country.
The Islamic Finance guidelines which have been established under Government Gazette Notice No. 716 of 2014 are to be issued to licensed banks intending to offer Islamic banking through window operations and institutions which may be granted Islamic banking licenses to conduct Islamic banking business.
Speaking during the launch in Lusaka this morning, Bank of Zambia Governor Michael Gondwe has observed that the introduction of Islamic Finance in the country entails further strengthening of the central bank’s supervisory capacity.
Dr. Gondwe however notes that the good news is that the Central Bank has significantly progressed on the supervisory front and will continue to develop its capacity in line with developments on the market.
He says this is to ensure that Islamic Finance develops in a manner that is consistent with appropriate Islamic principles and ethos.
The Central Bank Governor has also noted that the major challenge that is envisaged in rolling out Islamic Finance will be lack of the necessary capacity by financial services providers.
He says the Central Bank is in this case encouraging financial services providers to put in place appropriate programs and structures to build their capacity with the view of providing high quality and Shari’ah complaint financial services in Zambia.
And the Islamic Supreme Council of Zambia (ISCZ) has welcomed the launch of the Islamic Finance guidelines with the hope that such a development will bring down the cost borrowing in the country.
ISCZ president Suzyo Zimba says the council has particularly taken note that the launched guidelines are a product of an inclusive consultation involving various stakeholders that included the Islamic council.
Mr. Zimba states that the ISCZ is of the view that the Islamic Finance guidelines will no doubt contribute towards foresting economic growth by providing viable financing options.