The UK's sole Sharia Law-compliant bank has seen a huge surge of customers during the credit crunch, as its strict religious principles have made it a 'safe haven'.
The Islamic Bank of Britain says it has seen a significant growth in non-Muslim customers taking out accounts since the financial crisis took grip of Britain.
Under the strict rules of Sharia Law, the charging or paying of interest is prohibited, leaving many Islamic banks unscathed by the credit crisis - and nervy customers flocking to put their savings in safer hands.
Islamic Bank of Britain head of marketing Steven Amos said: 'Our core business will always be Muslims but the numbers of non-Muslims are really picking up.
'We've had massive interest and it's down to the number of reasons why we're insulated from the credit crunch.
'There were two reasons for the crunch - the first is liquidity, with banks lending to each other on the money markets - but Islamic banks do not borrow or lend on money markets because interest is not allowed.
'The second reason Islamic banks are insulated is to do with assets - everything has to involve an underlying asset or service and if you are going to trade in an asset you have to own it first.
'The explosion in complex derivative products over the last few years has left Western banks reeling from exposure to toxic assets often far-removed from their everyday activities.
'In contrast the more risk-averse Islamic finance system did not embrace this kind of deal.
'Conventional banks didn't know what they were buying in these derivatives but we have no exposure to subprime as we just don't deal in it full stop.
'We guarantee you we won't invest customers' funds in alcohol, tobacco, pornography or in any form of gambling.'
The Islamic Bank of Britain is the UK's only stand-alone fully Sharia-compliant retail bank.
(more)
Source: Daily Mail (English)
The Islamic Bank of Britain says it has seen a significant growth in non-Muslim customers taking out accounts since the financial crisis took grip of Britain.
Under the strict rules of Sharia Law, the charging or paying of interest is prohibited, leaving many Islamic banks unscathed by the credit crisis - and nervy customers flocking to put their savings in safer hands.
Islamic Bank of Britain head of marketing Steven Amos said: 'Our core business will always be Muslims but the numbers of non-Muslims are really picking up.
'We've had massive interest and it's down to the number of reasons why we're insulated from the credit crunch.
'There were two reasons for the crunch - the first is liquidity, with banks lending to each other on the money markets - but Islamic banks do not borrow or lend on money markets because interest is not allowed.
'The second reason Islamic banks are insulated is to do with assets - everything has to involve an underlying asset or service and if you are going to trade in an asset you have to own it first.
'The explosion in complex derivative products over the last few years has left Western banks reeling from exposure to toxic assets often far-removed from their everyday activities.
'In contrast the more risk-averse Islamic finance system did not embrace this kind of deal.
'Conventional banks didn't know what they were buying in these derivatives but we have no exposure to subprime as we just don't deal in it full stop.
'We guarantee you we won't invest customers' funds in alcohol, tobacco, pornography or in any form of gambling.'
The Islamic Bank of Britain is the UK's only stand-alone fully Sharia-compliant retail bank.
(more)
Source: Daily Mail (English)
2 comments:
The thing that is not made enough of about sharia is what it actually is.
Sharia is not just a way of doing things, it is the unassailable and unalterable word of the muslim deity allah.
This means that all choice is removed. Whether it is capital punishment, "interest free" finance or whatever, it comes without a choice. It is theocratic dictatorship which cannot be challenged.
Sharia has yoked Arabs and other muslim nations to stagnation.
This is ridiculous. Sharia/halal loans are loans, just loans which fund evil and do so without traditional transparency. Sharia banking is no more insulated from anything than any other banking, and if anything less so because their money is tied up in questionable endeavors which aren't backed up by government, state or international. Loans are loans, interest is interest. Sharia banks have no more federal deposit insurance than anyone else and their loans are just as shaky if no moreseo. I hope they all cave just to teach the world whose back God doesn't have, as if the state of the Muslim world over the last 1400 years weren't a clear enough sign.
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