National Bank of Tajikistan has issued a license to the first Islamic bank in Tajikistan – OJSC “Tavhidbank”

In order to create a legal framework for the introduction of Islamic banking, the Law of the Republic of Tajikistan “On Islamic Banking activities” was approved on July 26, 2014, No. 1108. This Law determines the legal and organizational basis of Islamic banking in the Republic of Tajikistan and provides favorable conditions for conducting Islamic banking activities.

At the new stage of development of Islamic banking system of the Republic of Tajikistan and for keeping the banking system stable, the provision of Islamic banking products with strong experience in managing financial risks can attract free funds of the population and long-term foreign direct investment to the economy and strengthen the foundations for further development of Islamic banking in the country.

Taking into consideration the above mentioned factors shareholders of OJSC “Sohibkorbonk” had decided to implement Islamic banking activities through converting their bank into a full-fledged Islamic bank. Therefore, by the decision of General Meeting of Shareholders dated june 12, 2019 it’s name was changed into “Tavhidbank”.

According to the Article 42 of Law of the Republic of Tajikistan "On the National Bank of Tajikistan" and Articles 4, 10, 12 and 18 of Law of the Republic of Tajikistan "On Islamic Banking" and the subsequent resolution of Board of the National Bank of Tajikistan dated from September 16, 2019 the first license for an Islamic bank in the country was issued to the Open Joint-Stock Company “Tavhidbank” №116 for carrying out Islamic banking operations in national and foreign currencies.

Chairman of the National Bank of Tajikistan Jamshed Nurmahmadzoda while giving the license to Acting Chairman of OJSC “Tavhidbank” Sherali Zardov has noted: “This event will open a new page for the country's banking system, which will help attract foreign capital and open new banks in line with the principles of Islamic banking in Tajikistan”. Specific instructions were given to the management of OJSC “Tawhidbank” for effective operations of the system with the application of new Islamic banking practices.

According to the resolution, the license of OJSC "Sohibkorbank" on implementation of banking operations dated from October 14, 2013 was annulled due to its conversion into Islamic bank.

In this regard, relevant records shall be made to the Register of Islamic Credit Organizations and Directory "Specific Banking Codes of Financial Institutions of the Republic of Tajikistan".

Press Division National Bank of Tajikistan