CBN clears air over Islamic banking

THE Central Bank of Nigeria (CBN) has cleared controversy over the named Islamic banking following the recent guidelines released by the CBN.

Kingsley Moghalu, CBN’s deputy governor, Financial System Stability said that the non-interest banking model is purely financial with no religion sentiments as contrary to media speculations and financial experts.

Speaking at a seminar this week in Lagos to journalists, he said that the non-interest bank was borne at of the need to increase the inclusion into the financial system from those who have been faced out of the system for various reasons.

Moghalu noted, “we reassure Nigerians that Non-Interest Banking is part of our plans to increase the inclusion of those that have been faced out of the financial system, for diverse reasons.

“The agenda is simply financial and not religion, Non-Interest Banking is opened to people of all stakes and all types of NIB model are welcomed. It could either be based on Islamic commercial juris-prudence or any other non-interest model. The Islamic model is prominent in the guideline because it is the only model we have received so far,” he added.

According to him, the Islamic Non-Interest Banking was not initiated by the present governor of the CBN, it has been in place since 2008. The CBN is an institution, we should not equate it with an individual. The institution will run according to the law and constitution of the Federal Republic of Nigeria.

He also said that, on the issue of the CBN Shariah Advisory Council, a new guideline has been released to address the issue and they will be regarded as the Advisory Council of Expert.

“The first guideline was released in January and we did not receive any critics, not until last month. The new guideline has addressed this and as we move on the guideline will be re-addressed. That is why we have called on people with different model to come forward,” he said.

He also pointed out that, Non-Interest Banking system is open to all faithful Nigerians. “No bank can name itself after Quran or any religious except with the permission of  the CBN’s governor guided by law, but I can tell you that there is no bank in Nigeria now bearing religions’ name.

“As regards capacity, the non-interest bank is a new thing in Nigeria and not established yet. We are equipping our regulatory official, they have been sent on training, and we are addressing the issue on capacity in the industry.”