2.4 Status Of Interest-Free Banking Finance In Sub-Saharan

1791 WordsMay 17, 20178 Pages
2.4 Status of Interest-Free Banking Finance in Sub-Saharan Africa The financial sector in some Sub Saharan Africa countries has been growing rapidly in the past two decades. New products have been introduced and financial institutions are playing an tremendous role in financial intermediation, including cross-border financial flows. However, Islamic finance in Sub Saharan Africa remains small, although it has potential given the region’s demographic structure and potential for financial expanding. As of end-2012, about 38 Islamic finance institutions comprising commercial banks, investment banks, and takeful1 (insurance) operators were operating in Africa (Dow Jones, 2012). As estimates based on Bank scope and Zawya, April 18, 2012 out of…show more content…
The National Bank of Ethiopia’s directive came into force in October 2011 about first Islamic Financial Institution in Ethiopia, However, the implementation of this banking system was started only in 2013 by few commercial banks like Oromia international bank S.C, Commercial Bank of Ethiopia and united bank S.C. Customers who are interested in the interest free banking are assured that they will obtain all those services that they would get from a fully-fledged interest free banking. The Interest Free Bank Window was commenced operation in mid of December 2013 which has contributed and promised a potential of differently mobilizing resources ahead of the Bank‟s time, the service being commenced on a limited number of branches only (Oromia international bank S.C Annual report 2013/14). In addition the commercial bank of Ethiopia starting launching interest free banking services at the end of October, 2013. Currently as the Commercial Bank of Ethiopia interest free banking performance document indicated at December 31, 2016 the total deposit of 3.8 billion from each Wadiya Amanah, Qard, Mudaraba saving accounts are
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