As the Central Bank smoothly moves forward to operationalize products like agent banking, the Muslim community feels BOU is unfair to continue frustrating Islamic Banking yet all these products were introduced under the same law.
Islamic Banking which is a complete opposite of conventional banking promotes symmetrical share of profit and losses and goes a head to terminate interest rates on loans and deposits, however with no clear reason the Bank Of Uganda has frustrated its operation in Uganda.
Earlier today Finance Minister Matia Kasaija stepped into this issue with a remark of comfort to the Islamic Bank instigators as he directed the Bank of Uganda to work so hard such that the pending establishment of Islamic Banking is quickly resolved within a nick of time.
In addition through a Telephone call, Mr Kasaija told Nowviba that as government, they had done their job to enact and pass the law leaving rest of the work to Central Bank (BOU) to operationalise the Shari’a-based banking system.
The Bank Of Uganda also told Nowviba that there are technical, legal and personnel problems that are holding them back, but the delay in operationalization of the Islamic Bank was to be resolved so soon.
Viba Business.
