[size=18pt]CBN Identfies Hindrances To Islamic Bank’s Take-Off[/size]

Monday, 13 December 2010 06:11 David Agba, Abuja




The Central Bank of Nigeria (CBN), has identified the dearth of knowledge, skills and technical capacity to regulate, supervise and operate Islamic bank (the non interest banking model), as major hindrances to the successful take off of the model.

The non interest banking model is a banking regime that offers services, products and financial instruments based on compliance to Islamic laws.

Special Adviser to the CBN Governor, Dr. Bashir Umar, made this known at a workshop organized by the Nigeria Deposit Insurance Corporation (NDIC), at the weekend where he also noted that higher quality personnel who had experience in project management and Islamic jurisprudence would also be required for the smooth implementation of the banking regime.

In his paper titled, "Islamic finance in Nigeria: Issues and Challenges", Umar also said lack of adequate legal, regulatory and supervisory framework, which had restrained potential foreign investors, absence of accountants and auditors knowledgeable in accounting and auditing standards pertinent to non interest banking as well as dearth of Islamic scholars knowledgeable in conventional financial markets are other challenges facing the model.

According to him, "The key challenges facing the model include the dearth of knowledge, skills and technical capacity to regulate, supervise, or operate non interest banks. Higher quality personnel with experience in project management and Islamic jurisprudence are required for financing and marketing activities.

"Lack of adequate legal, regulatory, and supervisory framework, which is restraining potential foreign investors, and the absence of accountants and auditors knowledgeable in accounting and auditing standards pertinent to non interest banks."

"It is evident that from the resilient nature of Islamic finance that enormous opportunities abound and positive and far-reaching impact is highly expected, for the Nigerian economy.”

"However, the challenges of operating this system are not to be overlooked. The positive indicators are that regulators are bracing up to address."

To facilitate the smooth take off of the model, Umar called for "an extensive capacity building through collaboration among various stakeholders to develop cognate expertise in non-interest banking, development of an adequate regulatory and supervisory framework for the effective operation of non-interest banking in Nigeria."

He said that considering the tremendous importance of the regime to infrastructure financing, there is an urgent need for these bottlenecks to be removed.


http://www.leadershipeditors.com/ns/index.php?option=com_content&view=article&id=21143:-david-agba-abuja&catid=16:headline-news&Itemid=102

What's the point of this scheme?

What's the opposition to interest for? Do they think it's some form of usury? I know usury is prohibited in Islam, but why would anybody go into banking if they had to just hand out money (loans) with no chance of making profit from the risk they've taken? A non-interest bank sounds like a security holding center for other people's money that the owner (the bankers) have to pay to sustain or keep running at a loss. But then again, I'm no banker and no kind of financial expert so I could be completely wrong about all I've said.

Let the Muslims and the bankers on this board come explain to me what the appeal could be about this proposed Islamic bank for an actual banker.

Is it me or does it seem like sanusi is trying to make up excuses or a case for why sharia courts are going to need to be established across the country, and also, why the workers within the industry have to made to learn islamic law in order to "get this banking thingy goin"? Sounds like islamization of nigeria through the backdoor.

chyz:

Is it me or does it seem like sanusi is trying to make up excuses or a case for why sharia courts are going to need to be established across the country, and also, why the workers within the industry have to made to learn islamic law in order to "get this banking thingy goin"? Sounds like islamization of nigeria through the backdoor.

I doubt these Islamic banks, if they were to take off, would be anywhere other than the North and the Muslim areas of cities in the south. And sharia courts are only applicable to Muslims.

america nko?

PhysicsQED:

I doubt these Islamic banks, if they were to take off, would be anywhere other than the North and the Muslim areas of cities in the south. And[b] sharia courts are only applicable to Muslims. [/b]

Go n steal in zamfara n tell them u can't be tried in a sharia court cos u're a christian.

I won't stop saying that sanusi would be better off an imam than a banker, Nigeria is hetero-religious,why introduce islamic banking? Like Chyz rightly said, this guy is trying to islamize Nigeria through the back door. Rubbish!

Like I said before, the CBN is given too much independence and that independence needs to be regulated immediately.

this is good development now u southerners can not steal money anyhow

anyway people better start getting use to it

alj harem:

this is good development now u southerners can not steal money anyhow

anyway people better start getting use to it

and if they still money then what will happen?

chyz:

and if they steal money then what will happen?

nothing but it just that it will be more difficult for them to do that,,,,,,,,that's all

lolatom:

Go n steal in zamfara n tell them u can't be tried in a sharia court cos u're a christian.

I won't stop saying that sanusi would be better off an imam than a banker, Nigeria is hetero-religious,why introduce islamic banking? Like Chyz rightly said, this guy is trying to islamize Nigeria through the back door. Rubbish!

Stealing in zamfara is a crime regardless. If the only court available is a sharia court, then I would fight it and use all my resources to get a trial in a regular court.


As for Islamicizing Nigeria, Nigeria is already over 45% Muslim, so how would he be trying to Islamicize Nigera? Sanusi has written multiple articles which explain his stance on sharia and his stance is nothing like the diabolical vision I think some people in this thread are insinuating or claiming it is.

The problem I do have with this, as with the National Mosque, and funding the Hajj, is that state money is being used to develop a purely religious enterprise. If they objected to interest/usury on purely ethical or cultural grounds and not even religious grounds, I might still have a problem with other people's money- people other than those interested in the idea of the bank- being used to develop or lay the groundwork for this scheme.