Islamic banking is showing rapid growth in Britain, new figures suggest.
Islamic law, Sharia, forbids Muslims to earn interest on their money, which calls for tailor-made financial services for Muslims.
In its half-yearly report, the Islamic Bank of Britain (IBB) reflected that it almost doubled its net income in the first six months of the year, rising to £1 million from £676,000.
Reported losses came down from £3.1 million last year to £2.7 million.
Up to June, new Islamic banking customers opened 10,511 accounts with the IBB. And in the last two months, a 40 per cent growth was recorded in the numbers of Islamic banking customers holding accounts.
The growth in demand for financial services that comply with Islamic law is attributed to the launch of new Islamic banking products and the opening of new Islamic banking branches across the country.
Earlier this year it was estimated that the Islamic mortgage sector would show growth of almost 50 per cent a year. With Islamic banking, the back will purchase a property that the banking customer leases back from it.
A Child Trust Fund that is compliant with Sharia has been launched at the beginning of the month.
Before, parents were unable to start saving money for their children through the government scheme.
Many high street banks also offer Islamic banking and financial services, with Lloyds TSB last week opening four new branches specifically for Islamic banking customers.
Islamic banking and financial services show growth
Financial Services > e-banking > Banking news
Islamic banking and financial services show growth
Thu, 15 Sep 2005
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