Islamic Bank of Britain celebrates UK islamic finance

17 August 2005

Since the launch of its first branch on Edgware Road in September 2004 Islamic Bank of Britain is celebrating one year of islamic retail banking in the UK.

The banks introduction of the UKs first Shariaa compliant deposit account at its launch was a significant event in Islamic finance and opened the market in the UK to retail Islamic products.

Up until then, the range of Islamic finance products available had been limited to home purchase schemes and current accounts.

In order to develop a full range of saving and financing products, Islamic Bank of Britain had to overcome significant barriers to developing products which were both Shariaa compliant and FSA approved.

The introduction of a halal deposit account based on the principle of profit sharing was an important first step in the process and something that had been contemplated by major Islamic institutions but never achieved before.

The launch also marked the first time that Britains 1.8 Million Muslims were able to take advantage of services from a stand alone UK bank that followed Islamic principles - Shariaa law.

One year on the bank has achieved an incredible amount, including the introduction of two halal offerings which remain unique in the UK - the deposit accounts, as detailed above, and, more recently, an unsecured personal finance facility.

Michael Hanlon, managing director, says: When we launched a year ago our aim was to make a wide range of Shariaa compliant retail banking products and services available to the consumer.

“In our first year alone we have reached that goal and, in the process, have worked hard to smooth the way for what is a new financial concept to many in the UK.

“A key focus for us has been to work with UK authorities, like the FSA and the Treasury, in order to create a thriving Islamic financial services market which fits within the UK legal and regulatory framework.

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