Netherlands: Growth in Islamic banking

According to the quarterly report of De Nederlandsche Bank (DNB) Islamic banking in the Netherlands is on the rise. More and more Dutch financial institutions have an interest in offering Islamic banking.

Islamic financial products abide by the Sharia. This means, among other things, that the bank may not offer interest or invest in the pork, drink or weapon industries. Islamic banks enable their clients to save or take loans through other constructions.

According to DNB this type of banking is on the rise worldwide. According to recent estimates the market has grown by 15% a year since 2000. At the end of 2006 300 Islamic financial institutions managed about 400 billion dollars. In Europe, and especially in London, Islamic banking is on solid footing.

In the Netherlands the potential demand for Islamic banking will rise in the coming years "as a result of a growth in population, the educational and income level of Dutch Muslims," according to DNB. The central bank says that the risk profile of banks deviates from that of traditional banks but the supervision framework is effective, according to the organization.

Source: NRC (Dutch)

See also: Sweden: No interest in Islamic banking

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