World Religion News
by Alison Lesley
The National Bank of Ethiopia is working to use Islamic banking to bring financial services to Ethiopians who didn’t have access to any financial services at all.
The principles of Islamic finances state that: you cannot make money out of money. Interest cannot be charged, nor paid, and you cannot invest in items banned in Islam like alcohol or gambling. The question is now how will a religion with 1.5 billion followers find services for banking and finances? Rarely is making services Islamic compliant at the top of the agenda.
In recent years, Islamic appropriate banking has gained more traction and support. In 2008, a proclamation by Ethiopia’s financial regulator introduced interest-free banking in the country. Formal directives on Islamic compliant finance were also issued in 2011.