Head of Tatarstan: The partner finance industry is one of the fastest growing in the world
Tatarstan Head Rustam Minnikhanov held a meeting to review the action plan for the development of partner (Islamic) finance in the republic. The event was held at the Government House of the Republic of Tatarstan. The meeting was attended by Chairman of the State Duma Committee on Financial Market Anatoly Aksakov, Chairman of the State Duma Committee on Economic Policy Maxim Topilin, Deputy Minister of Finance of Russia Alexey Moiseev and State Secretary - Deputy Chairman of the Bank of Russia Alexey Guznov.
Rustam Minnikhanov stressed that the partner finance industry is one of the fastest growing in the world. "Of course, these tools are in demand in our country and will attract additional investment resources. In accordance with the federal law, Tatarstan is defined as one of four pilot regions for the development of partner finance. I would like to thank the Presidential Administration, the Russian Government, the Central Bank and the deputies of the State Duma for their constructive work. I would like to note that the main proposals of the republic are reflected in the adopted law," the RT Head said.
Rustam Minnikhanov noted that Tatarstan was actively involved in the implementation of the project. In less than 2 months, the register of participants in the experiment included 2 financial organizations of the republic and 2 more applications are under consideration. Foreign partners are also interested in this work. So, Mir Business Bank from Iran plans to participate in the experiment.
According to the President of the Republic, the adoption of the law stimulated the interest of the population and business in Islamic finance. According to market participants, the number of transactions this year has already exceeded the results of last year by 2 times.
"The development of partner finance is an important tool for interaction with Islamic countries. This is a strategic direction for the development of international relations under the special control of the President of Russia. The Strategic Vision Group “Russia - the Islamic World” plays an important role in strengthening dialogue with Islamic countries. As part of its work, the topic of Islamic finance will also be considered," Rustam Minnikhanov added.
Tatarstan Deputy Prime Minister of Economy Midhat Shagiakhmetov said that work in the field of partner finance in Tatarstan has been conducted for more than 15 years. Successful experience has been accumulated in the implementation of individual projects based on the principles of Islamic finance.
To date, a number of credit institutions and financial companies provide services in the field of partner finance: consumer and business financing, housing financing on installment terms, leasing in accordance with the requirements of Sharia, investments through investment contracts and mutual funds. Ak Bars Bank and Sber offer a debit card that complies with the principles of partner finance.
During the work, about 2 thousand enterprises were financed, more than 1 thousand families purchased apartments with the help of partner financing, over 7 thousand bank cards were issued.
At the same time, according to the Minister, the purposeful development of this segment of the financial market requires an increase in the consistency and quality of its regulation, as well as the alignment of the conditions for the implementation of partner and traditional finance.
Thus, within the framework of the partnership financing experiment, in which Tatarstan participates, it is planned to identify problems and eliminate existing legal barriers, as well as to develop optimal regulatory mechanisms. This is aimed at increasing the availability and development of partner financing tools for the population and businesses, as well as attracting international investors.
2 organizations of the republic joined the experiment on partner financing: Ak Bars Bank and Ak Bars Capital. 2 more applications are under consideration at the Bank of Russia.
Midhat Shagiakhmetov said that banks operating in Tatarstan note a significant potential and interest in the sale of Islamic products. Also, according to the survey, 39% of enterprises are interested in Islamic products. They are mainly interested in salary projects, rental-leasing of machinery and equipment, purchase and sale with an installment payment mark-up.
The Minister presented a detailed action plan for the development of partner finance in the Republic of Tatarstan for the period of the experiment. The roadmap includes raising awareness and financial literacy of the population and business in the field of partner finance, training specialists, making proposals, including on regulatory regulation, developing the market and financial infrastructure, attracting investment in projects based on the principles of partner finance, as well as expanding international cooperation.
Representatives of Sberbank, Ak Bars Bank and Amal financial house told about the implementation of partner banking services. The rector of the Russian Islamic Institute Rafik Mukhametshin reported on the training of specialists in the field of partner finance, and the Chairman of the Duma of the Republic of Tatarstan Kamil Samigullin reported on educational activities within the framework of the experiment.
Deputy Finance Minister of Russia Alexey Moiseev noted that one of the main tasks is to attract foreign investments available in the form of Islamic finance. "This is very important. We are waiting for business representatives to find such a project, partners and bring them to Russia. This will be the main proof that this law was not adopted in vain and the efforts spent were not in vain," he said.
"The key issue is the certification of specialists. We may have to write it out in the legislation. Here you need to put an end and determine who is the last place to recognize the product as halal. Otherwise, we will always have questions from the population and relevant structures. Therefore, this work needs to be approached very carefully," Maxim Topilin said.
"I was struck by one figure. People who profess Islam do not invest about a trillion rubles in banks, because they believe that it does not correspond to their religion. If this is the case, then we must do everything so that these people bring money to financial institutions and this money starts working for our economy," said Anatoly Aksakov, chairman of the State Duma Committee on the Financial Market.
In conclusion, Rustam Minnikhanov once again noted the need to inform the population about the possibilities of Islamic financing and to improve the financial literacy of citizens. This will also contribute to the suppression of any fraud attempts.