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HSBC scraps Sharia-compliant mortgages

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HSBC has stopped offering Sharia-compliant mortgage products following a strategic review of the bank’s businesses, according to The Times.

According to the paper, HSBC is scrapping Islamic loans and bank accounts for personal customers in Britain and several other countries, including the United Arab Emirates, Bahrain and Bangladesh.

A spokesman says: “Sharia mortgages are a very small business line for us in the UK. This is part of a strategic review of all our businesses.”

HSBC began offering Sharia-compliant home loans in 2003. The products account for 21,000 of HSBC’s 16 million bank accounts in the UK and £350m of mortgages out of HSBC’s book of £70bn.

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  • PARACHA 9th October 2012 at 5:43 pm

    HSBC sharia complaint product though a very small part of its portfolio… was fulfilling a certain niche which will now become a void and for many people who want to avoid the traditional interest based mortgage due to religious beliefs will find it very difficult to find similar products offered else where… so this will be a huge disappointment with many UK Muslim who do add up to be a large part of the popultion

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