Islamic Banking

            ◊

Faizsiz  Qazanc

                           Azerbaijan

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     Kauthar Bank is one of the first commercial banks in Azerbaijan. "Kauthar Bank" JSC functions in Azerbaijan banking sector since 1989. The previous name of the Bank was "Universal Bank" till 24 September, 2001. It is the first bank in Azerbaijan and the second in CIS countries, which activates according to the Islamic Banking system.

New statutes of the Bank was confirmed in 10.03.2001 at the shareholder's meeting and registered at the Ministry of Justice in 24.09.2001 as "Kauthar Bank". In 21.10.2002 National Bank gave a new license 1 02-10/381 to "Kauthar Bank" for all kinds of banking activities. "Kauthar Bank" JSC has registered in Tax Department of Yasamal district with INTP 1 1300174701. After this, it started to apply Islamic Banking mode in its activity.

Paid capital of the Bank consists of 4,6 millions manats, shares consist of 23000 equity and preferred shares.

The structure of Bank's paid capital is as in the following:
-state institution's shares 0,1%
-non-state institution's shares 0,2%
-resident physical person's shares 84,7%
-Shares of foreign capital 15%

During the last seven years bank's assets have increased from 320 thousands manats to 9,8 millions manats.

The general license of the Bank gives an opportunity to provide the entire banking services applied in world banking practice. Governmental institutions, legal and physical persons working at private sectors are served by the Bank. It also actively works on the increasing the types of banking services and improving the quality of them.

Today the Bank provides its clients with the following banking services:
I .to set up bank accounts and operation of accounts;
2.transactions of cash currency and exchange transactions;
3.transactions of collection of payments;
4.money remittance;
5.transactions with securuties;
6.investment transactions;
7. savings and deposit transactions;
8.L/C transactions with corporative clients;
9.transactions of guarantee;
10.transactions with plastic cards;
II .transactions of conversion;
12.collecting of payments of public utilities from people;

The Bank has stopped the interest-rate transactions since 2002, from Islamic Banking point-of-view. The number of the clients of our Bank is more than 500 legal and physical persons. The Bank has correspondent relations with the worldly famous financial institutions of the countries such as Germany, Austria, Turkey, Ukraine, Russia, and etc, and it has also closed relations with Japanese, Saudi Arabian and English businessmen.

The Bank has two branches. One of them is in Berde city and another one in Baku.The number of employees working in Baku is 26.

License:

License No 92, given by National Bank of Azerbaijan Republic for providing banking activity in 21 December 1992.
Membership to professional organizations, stock exchanges:
1 .General Council for Islamic Banks and Financial Institutions;
2.Association of Banks in Azerbaijan;
3.Baku Interbanking Currency Stock Exchange;
4.Islamic Banks Audit and Accounting Association.