Islamic Banking In Russia: Institutionalization, Problems, Prospects

Abstract

Features of the Islamic banking development in contemporary Russia are considered in the paper. The relevance of the research is determined by the growing significance of Islamic financial institutions (IFI) in the global economy. The interaction of Islamic banking with the traditional Western model of financial and credit activities is a popular topic for international scientific discussions. The formation problem of financial banking in Russia has found only partial reflection in the scientific literature to date and requires further study. The authors have set the task of identifying the system key parameters of Islamic financial institutions in Russia, and the most essential factors and prospects for their growth. The research hypothesis is that Islamic banking has great development prospects in Russia. The research was carried out on the basis of the data revealed by the authors on the creation and operation of Islamic financial institutions in Russia using invent-analysis and expert assessments of the development of international Islamic banking. The novelty of the paper is determined by the comprehensively introduced information about Islamic banking in Russia including the regions of its greatest prevalence such as the Republic of Tatarstan, the Chechen Republic, and the Republic of Bashkortostan. The paper focuses on the state policy and regulatory activities of the Central Bank of Russia in relation to Islamic financial structures. The research outcomes confirm the hypothesis about favorable prospects for the development of Islamic banking in Russia and its integration into the system of the Eurasian financial market.