Regulatory Alerts2013-03-17
Conditions for the Establishment of Islamic Banks
The Central Bank of Djibouti issued Instruction 2012-01 to establish the regulatory framework for Islamic banking in Djibouti, defining authorized institutional forms including standalone Islamic banks, foreign branches, and internal Islamic counters. The regulation mandates a minimum capital of one billion Djiboutian Francs, requires at least 25% shareholding by qualified banks or entities for a minimum of five years, and enforces strict financial, administrative, and Sharia-compliant independence for Islamic counters within conventional banks. Furthermore, it outlines detailed authorization procedures, capital increase provisions for exceptional cases, and consolidated reporting requirements to ensure full compliance with Sharia principles and public interest.