By Stefano Loconte
Our contribution on the latest Islamic Finance News 1st April 2020 (Volume 17 Issue 13, page 15)
“If we want to consider the opportunity for Italy to create an Islamic Bank, namely the possibility to constitute an Islamic bank, an Italian subsidiary of an Islamic bank or an Islamic window of an Italian bank, we firstly have to consider that the concept of ‘bank’ as designed in conventional Finance does not exist in Islamic finance. What is different is the business object of the institution and the manner it is pursued. An Italian bank usually collects deposits and grants credits and, pursuant to Article 10 of the Italian Consolidate Law on Banking, ‘banks’ are institutions which can exercise, not only banking activities, but also all those financial activities not reserved by the law to other specific intermediaries.In view of this, it is important to take into consideration the special features that an Islamic financial institution need to be Shariah compliant, but also to verify the rules a bank in Italy shall comply with to play its activities”
This article was first published in Islamic Finance news Volume 17 Issue 13 dated the 1st April 2020.
Read the full article on the latest IFN p.15: you can download the full 1st April issue as PDF online at www.islamicfinancenews.com, read the single article online here, or download as a PDF here below.