CEM REPORT, FINANCE | The Chartered Institute of Bankers of Nigeria has scheduled a course on Non-Interest Banking and Green Sukuk Investment.
The course which is titled ‘Understanding Non-Interest Banking and Green Sukuk Investment’, is principally structured to give an in-depth understanding of the new investment and financing alternative covering principles, products, services, modes of financing, benefits, challenges, and regulatory frameworks.
In its overview, CIBN writes; “The emergence of Non-Interest Banking and Sukuk investments has brought significant changes to the banking and finance industry. These alternative models, based on Islamic principles, offer ethical and socially responsible investment options, gaining popularity globally and in Nigeria.”
Non-Interest Banking (Islamic Banking) was born in the early twentieth century. The foundation for what would become modern Islamic Banking began with trade activities conducted in Mecca and Medina. Some of these activities continued even after Islam became rooted in Mecca.
The modern Islamic finance is traceable to a small rural banking experiment in a remote village called Mit Ghamr in Egypt in 1963, where Islamic thinkers began to explore ways of organizing commercial banking on an interest free basis. It, however, started formally in the Middle East in 1975.
This banking system complies with Islamic principles such as non-acceptance or payment of interest on loans and therefore is replaced by shared equity in a non-monetary asset which also require the lender(s) to participate in the risk-sharing.
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In the same line, Sukuk Bonds are certificates issued to investors representing a tangible asset, service, project business or joint venture. The asset must be Shariah-compliant. Sukuk has been issued so far by States and many times by the Federal Government of Nigeria.
Banks that currently operate on these principles are Jaiz Bank, Lotus Bank and Taj Bank adequately insured by NDIC and covered by Banks and Other Financial Institution Act (BOFIA) 1991 (as amended)
CIBN seeks to provide a more comprehensive insight into these terms and more in the course scheduled to hold on May 30th, 2023 at the Banker’s House, Adeola Hopewell Street, Victoria Island, Lagos.
To participate, click here