Financial expert: The Algerian legislation is an impediment for the Islamic banking system

The head of the French Islamic Finance Institution “ COFIS” Mohammed Nouri has explained the feeble use of the Islamic financial system, based on rate-free loans, in the North African countries including Algeria, to a number of hurdles mostly due to misconception.

• The great majority of Muslims are deeply convinced that the concept is just another trick to legalize the traditional banking system, he adds.
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• Talking on the sidelines of a seminar organized by the High School of Trade and the Islamic Bank for development here in Algiers, Mohammed Nouri has declared to Echourouk that the issue is old enough and goes back to the days of the prophet ( PBUHM).
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• But the expert has indicated that there is a big difference between the two concepts noting that the Islamic banks are partners and rely on the benefit’s margin as opposed to the traditional banks that rely on interest rates.
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• He has also noted that legislation in Tunisia, Morocco and Algeria is not fit for the implementation of the Islamic banking system and is not ready to give up the traditional one.
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• The expert has indicated that the General Council of Banks and Islamic Institutions has set up a group of experts entrusted with forwarding the appropriate measures to alleviate the latent financial crisis. The document is set to be presented to the G20 .
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