BoU to bankers: Educate us on Islamic banking

Kampala.

Bank of Uganda (BoU) Governor Emmanuel Tumusiime Mutebile has urged the banking sector to create awareness on Islamic banking to ease the rollout of the emerging model.

“We should not think that Islamic banking and finance is only for Muslims. It is for all of us. Therefore, you need to come out and stress the unique tenets that distinguish Islamic banking from the conventional banking and compare the similarities too,” he said in his speech read by executive director supervision BoU, Ms Justine Bagyenda during the Tropical Islamic Banking Operations Workshop at Hotel Africana on Monday.

Islamic Banking is a banking system that is consistent with the principles of Shari’ah (Islamic rulings) and Islamic economics.

Mr Mutebile emphasised the need for banking practitioners to seek knowledge on the new banking field.

BoU is in the advanced stages of putting together all the supervisory manuals and regulatory framework on Islamic banking.

Mr Mutebile not only affirmed Bank of Uganda’s commitment to continue supporting sensitisation programmes but also pledged to collaborate to put in place the prerequisite supervisory structure that will support a healthy environment for investors interested in Islamic banking.
Mr Sameh Krekshi, the Tropical Bank managing director, highlighted logistical inadequacy associated with setting up the new banking model as a major challenge.

Islamic finance
Assets. Global Islamic finance statistics in 2016 indicate that Islamic finance assets have exceeded $2.3 trillion (Shs8.3 trillion) with more than 100 products and an annual growth of over 20.7 per cent across more than 76 countries.