Islamic Finance : The Central Bank of Mauritania withdraws Maurisbank's licence
The institution said the withdrawal is motivated by "serious shortcomings".The Central Bank of Mauritania (BCM) announced on January 1st that it has withdrawn Islamic bank Maurisbank's
licence, which it obtained in 2013.
The institution said in a statement that the withdrawal is motivated by "serious shortcomings", including the fact that the bank was in "a situation of default, shown by the absence of compensation since March 3, 2014 and an inability to meet its obligations towards its customers".
With a banking rate of just 20 percent of its workforce, Mauritania needs alternative methods such as Islamic finance to improve access to credit for Mauritanians.
In 2012, the BCM has implemented reforms to provide a new legal framework that is specific to Islamic finance products.
Its governor, Sid Ahmed Ould Rais, said that Islamic finance can widen access to banking services in the country "as the Mauritanian Muslim mentality is resistant to speculation".
Mauritania now has 17 banks, four of which are entirely dedicated to Islamic finance.