Diagnostic Department
Scientific Advisory Center "Consciousness"
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7.2.  Islamic banks and funds.

Every religion has a bearing not only on politics but also the financial system. In 2011 marks 36 years since the beginning of the Islamic Development Bank, which was founded at the first conference of finance ministers of member states of the Organization of Islamic Conference. During this time the Sharia

system of economic activity established itself not only in traditionally Muslim countries, but also in the West2.

The Prophet Muhammad, no doubt, was not only a brilliant ideologue, speaker and propagandist of own teachings, the germs of which had appeared before him, that is, he built his faith not completely from scratch, not to mention the fact that he tried to analyze and synthesize Judaism and Christianity - but also a brilliant financier. The main difference between an Islamic bank from the "secular" is the refusal of the Jewish principle of growth of money, that is usury (lending rate). Based on this principle, the whole range of banking products is somewhat different from the conventional. This immediately eliminates the possibility of financial pyramids, and then a financial bubble, the most striking specimen of which is today the United States. In other words, the money in Islamic banking, by definition, cannot be weak or empty.

Islamic Bank - is not just borrowers and structure, which acts in the future as a partner of his client. Financial concept of the Prophet is primarily in that he introduces a so-called Zakat, according to which each member of the Muslim Ummah (community) must allocate the common treasury 20 percent (one fifth) of their income. It is - twice as many Jewish financial practices, as in Judaism, there is a rule of tithing (a tenth or 10 percent). Thus, in financial terms the Muslim Ummah initially became self-sufficient, which enabled it to hold its first squad, and then the army, to have an apparatus to help the needy, and so on.

If the Western model of money borrowed at first from one object to then give them a loan to the second, and in both of these operations has put a certain percentage to the bank (in the first case of its payment, the second in the collection), the East is not the case. One side makes a venture capital another side its work. The parties agree in advance, in what percentage of the relationship they will share the profits. If the work is completed the company losses and there is no gains financial loss is borne only by the depositor. Sharia emphasizes that the loss of time and effort invested in the company its work, not less important than the money lost.

Thus, Islamic investment, there is one significant drawback. According to sharia law, as already mentioned, charging interest is forbidden. Therefore, the investor Islamic Bank does not guarantee repayment of investment deposits. According to the Shariah principles, all participants should bear the risk of the transaction. For example, the bank invests its clients in any project. After a while it becomes clear that financial structure has suffered a loss. In this case, investors lose money. If the project is, by contrast, was successful, then the profit is divided among the depositors in proportion to their invested funds. Traditional banks are generally paid a percentage of their income, regardless of whether they received a profit or suffer losses.

It should be noted that Islamic investors allowed to finance activities related to production or trade of tobacco, alcoholic beverages, weapons and ammunition, gambling. Compliance of Islamic financial institutions is following Shariah Council acting on the principles of Islamic finance which operates at every Islamic bank. It has been recognized by experts with certain titles, regalia and experience.

In 2011, only three countries fully transferred its banking system to Islamic these are Iran, Pakistan and Sudan. Kazakhstan has also made amendments to banking laws and began to work with Sharia banking products. The Islamic form of financing is successfully implemented not only in the Muslim world but also in Europe, and Britain is the first country where the authorities have allowed the discovery of Islamic banks and secured this right in law.

A growing number of Muslims in Russia also wants to invest their money in accordance with the principles of Sharia. In the republics of the NC, where a Muslim majority lives, the demand for Islamic banking is growing every day, but it is still very few react. The main problem is the lack of legal framework for the development of Islamic banking. This question is often raised and discussed at the regional television and press. Increasingly promoted the need and demand "to get a loan, does not contradict the norms of Islam." Especially the emphasis is on youth. One of the main reasons for the ban on usury in Islam is that the lender receives interest on loans without the labor of similar work of the borrower, and this percentage is guaranteed, while the return of the borrower is not guaranteed. Thus, the risk has only one side, while another runs the risk of only those that return can be later than expected, which is also offset by the interest.

Customers of Islamic banks may be representatives of all religions. The question of belonging to a particular religion is not basic. Originally, Islamic banks were created specifically for Muslims, but Muslims are the consumers of banking services, living in non-Islamic countries, until recently, faced with difficulties when they needed to take advantage of financial services. Problems arose because of Islamic banking in these countries simply did not exist. This particularly applies to basic banking products - deposits, payments, mortgages and investments. Therefore, large Western financial institutions have questioned the expansion of client base and have relied on Islamic banking, which has gained popularity among people who do not practice Islam.

In Russia, the demand for microcredit is far ahead of supply, mainly because of strict lending conditions from banks and due to this inability to meet the needs of the majority of borrowers on mortgage bank for a loan. Here an important role plays credit consumer cooperatives of citizens (CCC of c), established in accordance with federal law with the same name. CCC makes loans at interest to members of the cooperative, with a guarantee of one or more citizens who are not related by ties of kinship with the borrower. This is mainly short-term loans up to a year with a monthly interest rate higher than the bank. Despite this, in small towns and villages where not very well developed banking infrastructure, this form of lending is becoming more and more customers. This situation is not confined to the territories of the North Caucasian republics: "This should speak in other regions of Russia where the main population are Muslims," - said the representative of the Association of Banks in Dagestan, Ali Aliyev.

While a leader in the desire to create Islamic banks and funds in Russia is Tatarstan. First International Islamic Conference held investment 10.06.2009 in Kazan. The event was organized by the authorities of Tatarstan jointly with the Islamic Development Bank. This is the first such event since the country is not a party to the Organization of Islamic Conference. The forum was attended by about 200 people - representatives of banks, the business communities of member countries and observers from the Organization of Islamic Conference, as well as representatives from the embassies of several Arab countries. Among the participants were also more than 110 large and 158 foreign companies of Tatarstan. There were scheduled major investment contracts, which will be implemented in various regions of Russia, not only those inhabited predominantly by Muslims.

It should be noted that at the Forum any of the pre-invited members of the Central Bank of Russia did not come. The interest of the authorities of Tatarstan is obvious - it's raising funds from abroad. Of course, if the government of Muslim republics of the Russian Federation expects to attract investments from the Persian Gulf, and long-term cooperation with Muslim investors, the establishment of an Islamic bank they need. After in December 2006 Russian Central Bank revoked the license of "Badr-Forte Bank" - the only Russian bank that used Islamic methods and techniques of doing business, proponents of Islamic finance has appeared even more.

From the above we can make some important conclusions regarding the prospects for Islamic finance in Russia:

1. Investors from the Middle East have shown their willingness to invest in Islamic finance projects in Europe. In turn, the state represented by the regulatory and supervisory authorities, does not only prevent, but also provides comprehensive support created by Islamic financial institutions. As for Russia, investors from the Middle East are not yet ready to experiment with the creation of Islamic banks in Russia. The Central Bank and other supervisory structure impede rather than promote the development of Islamic finance in the country.

2. In Europe, the development of Islamic finance - this is a question of economics rather than politics. In Russia, everything that relates to Islam, overly politicized. In such circumstances, hardly be expected creating an Islamic bank or insurance company at the federal level as long as there is not followed by appropriate action of the President. At the regional level, the establishment of an Islamic financial institution is possible but with unconditional support of the local administration.

3. The establishment of Islamic banking "windows" in Europe in 1990 - the beginning of the 2000s. And in the future and create a fully Islamic banks was in response to growing demand from Muslims for Islamic financial products. In Russia, the country's only Islamic bank was established and operated in almost complete absence of demand for such services.
4. Europe has 30 years experience in the development of Islamic finance. During this time, there were seen ups and noticeable fall. In Russia, the Islamic financial services were provided formally since 1998 by Bank "Badr", and actually - since 2000 by the combined "Badr-Forte Bank". In other words, Islamic Bank, which offered a limited range of Sharia-compliant banking products functioned in Russia a little over six years. In the face of continuing Russian capitalism is too little time to talk seriously about the prospects of Islamic banking.

Now it is important who is first finds the resources and courage to make in the country strong Islamic bank it is a matter of the next five years. The most promising is coming to Russia set up an Islamic bank in the West, perhaps even an investment. Western financial institutions will cause less concern in the Central than their Middle Eastern counterparts. If successful, such initiatives as the chain other banks will create specialized Islamic "windows".
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