Post by Lara Mahdjidi on Mar 18, 2009 10:35:29 GMT 4
Nigeria: Jaiz Islamic Bank to Start Operations
Yunus Abdulhamid and Abubakar Buba
The Managing Director of JAIZ International Bank Alhaji Mohammed Mustapha Bintube has said that the bank will now commence full operation in Nigeria before end of the year.
He said the delay to begin operation was occasioned by change of policy by the Central bank of Nigeria where the minimum capitalisation for a bank was raised to N25 billion from N2.5 billion, lack of commitment on the part of Nigerian investors and more recently, the global economic meltdown. He also identified the absence of a regulatory frame work by the CBN as part of the cause.
Bintube said this yesterday while delivery a paper titled, "World Economic Meltdown: Islamic Perspective/Solution" at a public forum organised by the Muslim Media Practitioners of Nigeria (MMPN) in Abuja.
The Jaiz Bank was incorporated in 2003 in Nigeria to operate the Islamic banking option which provides non-interest financial services but six years after, it is still struggling to find its feet.
According to the Jaiz boss, "It is our collective failure and distrust in the system that Jaiz has not taken off after many years of working. We have had several international intended investors who came to do market surveys and at the end, they noted that Nigerians are rich enough to do it. If they can't do it, why should we invest in it', they used to ask."
He however said that with the release of the regulatory frame work of Islamic banking by the CBN last week, all was set for the bank to commence full commercial operation as soon as possible.
Speaking further, Bintube blamed the present global economic meltdown on "unbridled mortgage loans to make money especially in America and Europe, imprudent lending by banks ,financial derivatives and speculation which equals gambling abhorred by Islam while regulators watched the other way.
He said Islamic banking thrive on buying and selling, a pure moral and ethical business transactions devoid of interest and speculation wrecking the world economy today.
"A society where there is no gambling, alcohol, and prostitution is the type Islam seeks to project and not imaginary profit. It also seeks to project greater justice in human society as without justice, the society declines and leads to self destruction," he said.
He called on the Nigeria government to double its effort if it must attain its dream of becoming one of the 20th most developed economy in the world by years 2020, saying achieving that means beating South Africa and Egypt which currently lead Africa economically and they both have Islamic banks which are non interest based.
Meanwhile, former deputy governor of the Central Bank of Nigeria (CBN) Dr. Obadiah Mailafia has called on the Nigeria's apex bank to create a department for the shariah banking option which provides for non-interest regimes in the financial sector.
He said doing so will help empower the people intellectually as well as provide adequate regulatory framework for operators coming up with such financial options.
He said, "CBN can do more to open a department of Islamic banking to train and educate people. It will promote investment in the country also."
Obadiah said this yesterday while making remarks at the public lecture organised by the Muslim Media Practitioners of Nigeria (MMPN) in Abuja on the "Global Economic Meltdown: Islamic Perspective and Solution."
He noted that the financial crisis experienced today stemmed from the failure of the United States of America to maintain its position as the world banker of the last resort, saying that the practice of spending $1 billion a day by former president Bush's administration added further strain to its system.
"Apart from the sub-prime lending in the mortgage industry and corruption in the America financial system, the America crisis of hegemony is also responsible. We are in a digital age where various options should be open to people. It is not only the Muslims that want it. Everyone wants his money kept safe and safety seems to have eluded today's transactions."
"We need more transparent banking, more transparent central banking and regulations," he said.
Yunus Abdulhamid and Abubakar Buba
The Managing Director of JAIZ International Bank Alhaji Mohammed Mustapha Bintube has said that the bank will now commence full operation in Nigeria before end of the year.
He said the delay to begin operation was occasioned by change of policy by the Central bank of Nigeria where the minimum capitalisation for a bank was raised to N25 billion from N2.5 billion, lack of commitment on the part of Nigerian investors and more recently, the global economic meltdown. He also identified the absence of a regulatory frame work by the CBN as part of the cause.
Bintube said this yesterday while delivery a paper titled, "World Economic Meltdown: Islamic Perspective/Solution" at a public forum organised by the Muslim Media Practitioners of Nigeria (MMPN) in Abuja.
The Jaiz Bank was incorporated in 2003 in Nigeria to operate the Islamic banking option which provides non-interest financial services but six years after, it is still struggling to find its feet.
According to the Jaiz boss, "It is our collective failure and distrust in the system that Jaiz has not taken off after many years of working. We have had several international intended investors who came to do market surveys and at the end, they noted that Nigerians are rich enough to do it. If they can't do it, why should we invest in it', they used to ask."
He however said that with the release of the regulatory frame work of Islamic banking by the CBN last week, all was set for the bank to commence full commercial operation as soon as possible.
Speaking further, Bintube blamed the present global economic meltdown on "unbridled mortgage loans to make money especially in America and Europe, imprudent lending by banks ,financial derivatives and speculation which equals gambling abhorred by Islam while regulators watched the other way.
He said Islamic banking thrive on buying and selling, a pure moral and ethical business transactions devoid of interest and speculation wrecking the world economy today.
"A society where there is no gambling, alcohol, and prostitution is the type Islam seeks to project and not imaginary profit. It also seeks to project greater justice in human society as without justice, the society declines and leads to self destruction," he said.
He called on the Nigeria government to double its effort if it must attain its dream of becoming one of the 20th most developed economy in the world by years 2020, saying achieving that means beating South Africa and Egypt which currently lead Africa economically and they both have Islamic banks which are non interest based.
Meanwhile, former deputy governor of the Central Bank of Nigeria (CBN) Dr. Obadiah Mailafia has called on the Nigeria's apex bank to create a department for the shariah banking option which provides for non-interest regimes in the financial sector.
He said doing so will help empower the people intellectually as well as provide adequate regulatory framework for operators coming up with such financial options.
He said, "CBN can do more to open a department of Islamic banking to train and educate people. It will promote investment in the country also."
Obadiah said this yesterday while making remarks at the public lecture organised by the Muslim Media Practitioners of Nigeria (MMPN) in Abuja on the "Global Economic Meltdown: Islamic Perspective and Solution."
He noted that the financial crisis experienced today stemmed from the failure of the United States of America to maintain its position as the world banker of the last resort, saying that the practice of spending $1 billion a day by former president Bush's administration added further strain to its system.
"Apart from the sub-prime lending in the mortgage industry and corruption in the America financial system, the America crisis of hegemony is also responsible. We are in a digital age where various options should be open to people. It is not only the Muslims that want it. Everyone wants his money kept safe and safety seems to have eluded today's transactions."
"We need more transparent banking, more transparent central banking and regulations," he said.