24th session of the Researchers Club
Skopje, 3 March 2017
Press release of the NBRM
On 2 March 2017, the National Bank of the Republic of Macedonia held the 24th session of the Researchers Club, at which the paper “Islamic Banking and Its Perspectives," by Alex Kozhuharov PhD, Jana Ilieva, PhD and Natasha Ristovska, PhD was presented. The paper contains an analysis of the specifics of Islamic banking in the context of the prospects for the development of the European continent.
According to the authors, the Islamic banking has gradually grown into the fastest growing financing model, with extremely developed centers not only in the Arab world but also in Europe and Asia. The fundamental principles of this banking are derived from the basic principles of Sheriat and put considerable emphasis on ethical, moral, social and religious dimension of transactions, in order to achieve wider benefits for society as a whole. In this regard, the basis of Islamic banking is the prohibition of giving or taking interest in any form. The work of Islamic banks is based on profit sharing and other permitted forms of opening transaction and investment deposits. The Islamic financial activities showed significant growth during past decades, envisaging that the growth will continue at the same pace in the future. This specific banking segment is systemically important in many countries from various regions in the world, with its presence being important also in some European countries, such as the UK and Switzerland. However, despite rapidly increasing trend of Islamic banking and Islamic financial system, the authors of the paper conclude that Islamic money market is still relatively underdeveloped in terms of conventional and that it is quite a disadvantage because of legal regulations which incline more towards conventional banking.
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