IsDB Aims to Elevate Islamic Finance Landscape in Mauritania

Nouakchott, Mauritania – A high-level delegation from the Islamic Development Bank Institute (IsDBI) recently held a series of meetings with the Central Bank of Mauritania (CBM) from 31 July to 1 August 2023. The purpose of this mission was to deliberate on the technical assistance required to foster a conducive environment for the seamless integration of Islamic finance into Mauritania’s banking landscape.

Welcoming the IsDBI delegation, the Deputy Governor of CBM, Mr. Boumedienne Taya, held discussions with key representatives: Dr. Abdallahi Mohamed, the esteemed Senior Financial Product Development Specialist, and Dr. Abozer Mohamed, a noted authority as the Senior Islamic Finance Specialist.

This collaborative endeavor came on the heels of CBM’s explicit request for IsDBI’s expertise. The aim was to harness the potential of Islamic banking in Mauritania, ensuring that it resonates with CBM’s overarching objectives. These objectives notably encompass sculpting robust regulatory, supervisory, and governance frameworks tailored for Islamic banking.

Over these intensive two days, the IsDBI team engaged in comprehensive dialogues with multiple departments within CBM and interfaced with a plethora of other pertinent stakeholders. These discussions revolved around the intricate challenges and prospective avenues associated with the evolution of Islamic banking and finance in the country.

The ambit of this collaborative technical assistance is vast. Key initiatives include:

1. Regulatory Blueprint: A thorough analysis will be conducted to pinpoint gaps in the current regulatory setup of CBM. This will be complemented by drafting an all-encompassing regulatory framework for Islamic banks, ensuring alignment with global prudential standards.
2. Operational Manuals: Development of comprehensive guides detailing the responsibilities, tasks, and reporting protocols for supervisory Shariah boards.
3. Payment System Assessment: An in-depth examination of the prevailing payment system, gauging its compatibility with Islamic banking tenets. Proposals for modifications will be crafted, and grounded in international best practices.
4. Liquidity Management: A meticulous study will be undertaken of CBM’s current liquidity facility. The aim is to conceptualize and roll out Shariah-compliant instruments tailor-made for CBN’s liquidity management and interbank dynamics.
5. Capacity Building: A cornerstone of this collaboration is the continuous professional development of CBM’s personnel. Training modules will be rolled out, acquainting CBM staff and other stakeholders with the freshly minted regulations, tools, and structures.

Reflecting on past efforts, the CBM and IsDBI have always been at the forefront of financial innovation. Their joint ventures in past years, such as the establishment of pilot Islamic banking programs and the introduction of Shariah-compliant bonds in Mauritania, have paved the way for this significant stride.

The symbiotic relationship between the CBM and IsDBI underscores a shared vision for Mauritania’s financial future, rooted in the principles of Islamic banking.