Algeria: “Fatwa Commission” To Monitor “Halal” Consumer Loans In Banks

The Chairman of the Higher Islamic Council, Abdullah Ghlamullah, announced the setting up of a “Fatwa Committee” composed of scholars and jurists in commercial transactions and experts in the economy to express their opinion on matters related to Islamic banking transactions

In this respect, the Ministry of Finance announced nearly three months ago that public banks would soon launch into Islamic finance. The first financial institutions concerned are the CNEP, the BADR and the BDL Banks. 

To ensure that what these banks will offer will indeed be “lawful”, all that they do in this direction will be supervised by a “religious body” composed of “specialists in jurisprudence in the field of financial transaction and economic experts”.

This was stated, Monday by the President of the Higher Islamic Council (HCI), Mr. Bouabdallah Ghlamallah, also former Minister of Religious Affairs at the Forum of the National Radio.

A body that will be created “soon”, he said,  and which will have the role of “support for banking institutions in the practice of Islamic finance and backing for the regulation adopted by the Central Bank to ensure full compliance with Islamic Shaâria business transactions”.

In Algeria, two private banks have invested this niche for some years now. These are Al Baraqa Bank and Al Salem Bank. 

Public banks have never proposed before a product called Islamic finance.

The objective of the authorities today is to prompt the Algerians to open bank accounts, especially those who believe that the usury is not in accordance with their religious beliefs. 

Public banks will therefore offer them products certified “hallal”.