With Islamic banking gaining momentum throughout the Middle East, questions about its regulatory framework are increasingly asked. Executive interviewed Dr. Ahmad Jachi, First Vice-Governor of the Central Bank of Lebanon and Chairman of the Islamic Banking Committee, about the issue. E What is the view of the Central Bank on regulating Islamic banking in Lebanon? The duty of the Central Bank is to safeguard the currency, economic stability and basic structure of the banking system as well as the development of the monetary and financial market. Therefore, the bank’s approach to the regulation process resides in creating a level playing field for a sound and stable Islamic financial system, one that is viable and well integrated in our financial system. E What is the legislative framework for Islamic banks in Lebanon? The promulgation of Law 575 in 2004 allowed the Central Bank’s Central Council to license Islamic Banks in Lebanon.
