HISTORY

Closed Joint Stock Company “Eco-IslamikBank” has been operating in the financial and credit market of Kyrgyzstan for more than 25 years and was established on the basis of Joint Kyrgyz-Russian Bank “Russian Credit”, which was reorganized into JSC “EcoBank” in 1998.

On May 14, 2010, the Bank was renamed from OJSC EcoBank to OJSC Eco-IslamikBank

On December 31, 2010, the Bank completely stopped accepting traditional deposits and issuing traditional loans.

On March 30, 2013 the Bank was renamed to “Eco-IslamikBank” CJSC.

On January 23, 2023 “Eco-Islamik Bank” CJSC celebrated its 25th anniversary since its foundation in 1998. During these decades millions and millions of clients in all regions of our country have used the Bank's services.

Eco-IslamikBank is the only major financial institution in the CIS that operates according to Islamic principles of finance (IPF). The beginning of implementation of Islamic principles of financing was laid back in 2006. And the whole last ten-year history of the Bank is inextricably linked with the implementation of Islamic principles of finance and banking (IPF).

Eco-IslamikBank has a license of the National Bank of the Kyrgyz Republic for the right to conduct transactions on Islamic principles of financing in accordance with the Regulation “On implementation of Islamic principles of financing in the Kyrgyz Republic within the framework of the pilot project”.  

Today, Eco-IslamikBank CJSC is the first bank in Kyrgyzstan to provide a whole range of financial services based on Shariah principles. Our network has about 100 offices throughout the country. We serve over 100,000 customers every month, offering a variety of services in Islamic deposits, financing, bank cards, halal transfers and much more. We sincerely believe that the system of Islamic financing principles we offer is true and fair, for it has been commanded to us by the Almighty. Our aspirations are that we tirelessly continue to create and develop a truly Islamic financial institution, which should become a leader in the financial services market of the Central Asian region. Eco-IslamikBank has come a long way in introducing Islamic banking, but there is still more to be done. Our team is relentlessly moving towards the introduction of convenient and fair relations for the population within the framework of Islamic banking.

The beginning of introduction of Islamic principles of financing in Kyrgyzstan

was laid by “Eco-IslamikBank” CJSC

Modern history of “Eco-IslamikBank” CJSC is inseparably connected with the beginning of introduction of Islamic principles of financing and banking in Kyrgyzstan. It was “Eco-IslamikBank” CJSC that was the initiator and started the introduction of IPF in Kyrgyzstan. 

It all started in the summer of 2005, when the head of the Kyrgyz Republic instructed the government authorities to work out options for solving the problem of lending to the population, during which it became clear that in the long term the most effective solution is to introduce Islamic principles along with the existing traditional principles of financing. This was the beginning of a long journey for Eco-IslamikBank, which decided to take part in a pilot project to introduce Islamic principles of financing.

On this thorny path Eco-IslamikBank had to overcome numerous obstacles, lack of knowledge and experience, lack of regulatory framework, endless bureaucratic hurdles and delays. But there was the will of the Bank's employees and management to gradually introduce financial services based on the principles of Shariah. We had to deny ourselves many things, to learn, to fight for our idea, to say goodbye to those clients whose activities did not comply with Shariah norms, to acquire new clients for whom Islamic principles, economic and moral philosophy of Shariah banking were at first incomprehensible. But fair relations with partners, the bank's openness, and the team's determination led to systematic financial growth, reducing the share of traditional financing to a minimum by the beginning of 2016.

On May 16, 2006 the Memorandum of Understanding was signed between the Islamic Development Bank (IDB), the Kyrgyz Republic and OJSC “EcoBank” (the old name of the Bank until May 14, 2010, now CJSC “EcoIslamicBank”) regarding the introduction of Islamic banking and financing in the Kyrgyz Republic. From this moment the countdown of the annals of Islamic financial services in Kyrgyzstan begins.

The Memorandum reflects the vector of movement of the parties for the most effective and fastest formation of an alternative Islamic economic model in Kyrgyzstan.

On December 7, 2007, in the Government House, Mustafa Bin Hamat, International Expert, Honored Member of the Academic Society of the Institute of Islamic Banking and Finance, International Islamic University of Malaysia, made a presentation to the members of the Government of the Kyrgyz Republic on the viability of the Islamic banking system as a second pillar supporting the development of the economy of the Kyrgyz Republic.

Since 2008, the Shariah Council has been the guarantor of compliance of the bank's activities with the principles of Islamic finance in “Eco-IslamikBank” CJSC. It is this authorized body that controls operations according to Islamic principles of banking and financing. In 2012 the Shariah Council for the fourth time issued Conclusions on compliance of all operations with the Shariah Standards. The Shariah Council of Eco-IslamikBank CJSC is the first in the CIS.

At the first ever meeting of the Shariah Council of a financial institution in the history of the CIS countries on April 28, 2008 at EcoBank OJSC, all necessary regulations, policies and documents were reviewed and approved, among others:

“Regulations on realization of Islamic principles of financing in the Kyrgyz Republic within the framework of the pilot project”

Strategy of EcoBank OJSC on full transition to Islamic banking;

Policy on realization of financing of operations on Islamic principles of EcoBank OJSC;

Policy on attraction of resources on Islamic principles of financing in EcoBank OJSC;

Regulations on the Shariah Council.

At the second meeting of the Shariah Council, held from April 12 to 14, 2009, a number of the following documents were considered, approved and endorsed:

Approved the conclusion of the Shariah Council regarding the confirmation that the operations carried out by subdivisions/branches of EcoBank OJSC, within the framework of the pilot project on implementation of Islamic principles of financing in the Kyrgyz Republic in 2008, were conducted in accordance with the principles of Shariah.

Approved the Regulations on the procedure of financing under “Murabaha” operation in EcoBank OJSC, approved by the decision of the Management Board Minutes No. 68, dated 04.08.2008, Model Agreements on financing under “Murabaha” operation and Agency Agreement.

Approved the Regulations on the procedure of raising funds from individuals and legal entities under the Unlimited Mudaraba Agreement, approved by the joint decision of the Board of Directors and the Management Board of JSC “EcoBank”, Minutes No. 39, dated 16.06.2008, and the Model Mudaraba (Unlimited) Fundraising Agreement.

Approved the Draft Instruction on calculation of remuneration from the income received by EcoBank OJSC as a result of operations carried out within the framework of the pilot project on implementation of Islamic principles of financing in the Kyrgyz Republic.

These documents also include issues on the division of the bank's balance sheet into Islamic and conventional, and the methodology of profit distribution among depositors. 

On October 13-14, 2022, the 14th Annual Meeting of the Shariah Council of Eco-IslamikBank CJSC was held under the chairmanship of the Board of Directors, members of the Management Board, Shariah Council of the Bank, as well as heads of structural divisions. The Shariah Council of the Bank is an authorized independent body, which supervises and controls operations on Islamic principles of financing and banking and is a guarantor of compliance of the Bank's activities on Islamic principles in full compliance with Shariah norms.