Experts' Views On The Impact And The Prospects Of Islamic Banking And Finance In The Republic Of Tajikistan
Keywords:
Islamic banking and finance, Impact and Prospects, sustainable development, the Republic of TajikistanAbstract
It is in the national interest to make the Republic of Tajikistan (the RT) one of the prominent financial markets in the Commonwealth of Independent States (CIS) consistent with the core values of the local society, environmentally friendly, and closely aligned with morals, ethics, and social responsibilities. The country’s main law on Islamic Banking (IB) was enacted in 2014, and subsequently, the CB introduced 16 instructions, procedures, charts of account, and recommendations for the country's smooth implementation and development of the IB industry. The first full-fledged IB was established in 2019 and two Islamic Banking Window (IBW) in 2020. Hence, the IB industry in the country is still at a nascent stage, and with the recent development of the IB industry, this study aims to explore experts’ opinions on the impact and prospects of IBF in the RT. Using qualitative research methodologies, semi-structured interviews were conducted with local and international experts who were familiar with the local industry. The findings reveal that IBF has a positive impact and promising prospects for the country's overall economy, including economic growth, sustainable development, and financial stability. IBF also promotes financial inclusion, addresses sector financing demands, and fulfills the religious needs of the populace. IBF can provide a resilient banking model that operates effectively, alongside conventional banking. Additionally, IBF is poised to foster economic development, enhance social welfare, and fill up the gap in the country’s financial intermediary. Findings from this study serve as a cornerstone for future exploration of the IBF industry’s impact while offering valuable insights into the country's evolving landscape of Islamic finance.
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