Uzbekistan has defined the procedure for banks' transition to Islamic banking.

Uzbekistan has established a procedure for banks to transition to Islamic banking.

The Ministry of Justice announced that banks and microfinance organizations in Uzbekistan now have the opportunity to transition to Islamic banking.

Amendments and additions to the Regulation on the Procedure for Transforming Microfinance Organizations and Banks were officially registered on August 1.

The document provides for the following options for transforming credit institutions:

* a microfinance organization into an Islamic microfinance bank;

* an Islamic microfinance bank into an Islamic bank;

* an Islamic bank into an Islamic microfinance bank;

* an Islamic microfinance bank into a microfinance organization;

* a bank into an Islamic bank.

Only Islamic microfinance banks will be able to transform their operations into Islamic banks.

State registration of a microfinance bank and obtaining a license requires a conclusion from the Inspectorate for Control over Construction, Housing, and Public Utilities, confirming that the bank's building is accessible to people with disabilities.

According to the Law "On Banks and Banking Activities," Islamic banking is defined as banking activities carried out in accordance with banking and banking legislation, as well as Islamic finance standards.

Previously, a licensing procedure for Islamic banks was approved in Uzbekistan. Islamic banking activities will be carried out exclusively with a license in accordance with the Law "On Banks and Banking Activities." To obtain a license, a bank must meet a number of requirements, including approval of the composition of the Islamic Financial Council by the Central Bank.