Agricultural Credit Bank To Launch 4 New Islamic Windows In September
The Principal Bank for Agricultural Credit and Development targets to increase the number of Islamic banking branches by inaugurating four new Islamic banking branches this September in Suhag, Assiut, Sharkia and Menoufia.
Ashraf Abdel Wahab, executive consultant of Islamic banking transactions at the bank, revealed the bank’s strategy which aims at launching Islamic banking branches all over Egypt.
The bank has recently launched six Islamic banking branches in Beni Suef, Fayoum, Behira and Qalyubia, while it received approvals to establish 14 Islamic banking branches. This move came to meet the increasing demand on Islamic banking products as most farmers prefer to conduct their financial transactions in compliance with sharia law. The bank has 11 Islamic banks since 1980s and they will be restructured in the upcoming period. The bank targets to increase the number of Islamic banking branches to 25 in the upcoming period.
Abdel Wahab added that the bank plans to expand in financing micro-enterprises through offering a new financing product for young farmers who own from one feddan (1.038 acres) to three feddans through providing them with production requirements such as fertilizers and pesticides and another financing product for farmers who own 3 feddans with finance from EGP 5,000 to EGP 15,000.
A new sharia-compliant financing product will be launched to provide small enterprises with credit facilities from EGP 5,000 to EGP 10,000.
The bank plans to offer sharia-complaint finances for farming of 1,000 feddans in Fayoum and Sharkia as the lender targets to expand in financing micro, small and medium enterprises. The bank will provide the farmers with in-kind loans and a cash finance of up to EGP 5,000.
The Islamic banking products are witnessing high demand from farmers as they prefer to conduct banking transactions in compliant with sharia law. The bank deals with 1.2 million farmers only, while there are about six million farmers. The bank’s Islamic deposits registered EGP 800 million at the end of last August. The bank plans to sign financing contracts with the Social Fund for Development (SFD) to expand in financing micro and small enterprises.
