IDB President calls for creation of new financial system of mixed type

Azerbaijan holds intense operations to develop the financial services industry in recent years, and great success has been achieved in this direction, the Islamic Development Bank (IDB) president Ahmad Mohammad Ali said at the 5th Global Forum on Islamic finance of the IDB on the topic “Global stability on the way to integration” held in Baku.

“However, we see that the Islamic financial system has helped us to withstand the impact of the global financial crisis. Such kind of responsibility for the sustainable development of our industry and spread of Islamic financial system in the world stands before each of us,” Ahmad Mohammad Ali said.

Holding such a forum provides an excellent opportunity to spread the principles of the Islamic bank financing in the broadest scale, Ali believes.

“The Islamic banking system offers an alternative that offers greater stability in the financing of all projects at the international level. The global financial crisis has led to a great confrontation between developed and developing countries. In large and deep consideration of this issue, we all come to the conclusion that the way out of this situation is only a more intensive development,” Ali added.

Taking it into account, the IDB President offered to conduct financial operations and introduce regulations of the Islamic financial system, based on sharia laws at the high economic level.

“Our task is to make a more flexible approach to financial issues. It’s necessary to assess what we have done and develop a strategy for the future that will ensure the stability of the financial sector,” Ali said.

Islamic Finance, in his view, provides a very great advantage for severe financial systems.

“Our main goal should be comprehension of all those moments in the Islamic finance industry, which will lead to the creation of a new financial system of mixed type,” Ali said. “Because only the Islamic financial system has helped to withstand the impact of the global crisis and, based on results of a specially designed created working group, we will know with what efforts we can enter the international financial system that ultimately will reduce the potential for the next crisis or the next wave of the current crisis,” Mohammad Ali said.

“I do not call for the complete transfer of the traditional financial system into the Islamic in the world, because it requires efforts and coordination, the application of certain rules of the Islamic financial business in the bank financing will surely bring good results.This was confirmed at the G20 meeting,” he said.

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