Azerbaijan IBA mulls Islamic banking unit

BAKU. Azerbaijan, Aug 18 (Reuters): International Bank of Azerbaijan (IBA), the country's largest lender, is preparing to launch a separate Shariah-compliant banking unit as the former Soviet state prepares an Islamic banking law slated for next spring.
A stand-alone unit would allow IBA, 50.2 per cent owned by Azerbaijan's Ministry of Finance, to more than quadruple its Islamic financing business in the country, said Behnam Gurbanzada, IBA's director of Islamic banking.
"IBA is working on developing new products as well as establishing a platform for a separate, fully Shariah-compliant unit," Gurbanzada said.
IBA, which holds 40 per cent of banking assets in Azerbaijan, has thus far extended $180 million of Islamic financing in the country; after legislation is passed, this could increase to as much as $750 million within a year, he added.