Posted on July 9, 2010 - by M. Bennett

Citigroup, Inc (NYSE: C) to Establish Shariah-compliant Microfinance Banks in Pakistan…

Citigroup, Inc (NYSE: C) will push the idea of creating Shariah-compliant microfinance banks for the needs of millions of Muslims, who have previously been excluded from micro-finance because of Islam’s prohibition on paying interest, said a senior official on Monday.

“There are large microfinance banks in Indonesia, Bangladesh, Pakistan, Morocco, Egypt and India where the strength of the Muslim population is greater. But interestingly none of them are Shariah-compliant,” said Global Director Citi Microfinance Robert A Annibale.

“If something has become an impediment between the people and microfinance banks, it should be addressed,” he said. “There are some industry people who fear that business will be politicised, but that should not be a matter of worry.”

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