Islamic Banking is for you if you are:
- Looking for Sharia’a compliant products and services•
- Worried about the stability of your bank amidst the current financial turmoil
- Unhappy with the unethical investment choices of your bank
Why?
- It's ethical - Islamic Banking is the faith based form of ethical banking. Investing in businesses that are considered unlawful is prohibited. This includes companies that deal in gambling, pornography, tobacco and other commodities contrary to Islamic values. Interest which is considered effortless profit, is prohibited which means no interest is received or paid by customers.
- Interest is forbidden but receiving no interest isn’t as bad as it sounds. Instead Islamic Banking is structured on principles of risk-sharing and entrepreneurship. Rather than paying interest, Islamic Banks share profits according to a profit sharing ratio agreed in advance with their customers. For example, a customer has £1000 in a savings account offering the customer a 60% profit share. The bank invests the money in Sharia'a-compliant activities. Assuming that these result in a profit of £20, the bank keeps £8 (40 per cent of the profit) and the customer gets £12 (the remaining 60 per cent). (N.B This example is for illustration only and not meant to be reflective of typical profit rates).
- Islamic banks are overseen by a Sharia’a Supervisory Committee consisting of eminent Islamic scholars to ensure the products and services offered follow Islamic and ethical Sharia'a principles.
- Islamic banks have been better protected from the credit crunch crisis affecting mainstream banks because: Islamic banks don't take interest-based loans from other banks - Islamic banks have predominantly high quality asset-based investments as the bank takes an actual stake. This means that they have avoided the instability the other high street banks have suffered. This is good for customers, shareholders and investors looking for a safer option for their money.
- Islamic banking is open to all faiths. A growing number of Muslim and non-Muslim customers are drawn to its genuinely ethical offering.
- It offers similar products and services to other high-street banks with current, savings and business accounts available as well as finance options for both the personal and commercial customer in a Sharia’a compliant way. Online and telephone banking facilities are also provided as well as branches throughout the UK. Who provides it?The Islamic Bank of Britain (IBB) is the UK’s first, and only, stand-alone, fully Sharia’a-compliant retail bank. Because of this and several of its unique products, it is considered a pioneer of Islamic Banking in the UK. With IBB, UK consumers can benefit from competitive profit rates.
- IBB offers a range of Savings accounts with a competitive target profit rates. You can also manage your Direct Savings account online, which is the UK’s first Sharia’a compliant online savings account.
- IBB was the first to offer to the UK market Sharia’a compliant Business Banking and Business Finance.
- IBB’s newly launched Home Purchase Plan, shares the risk of ownership with the customer, and offers a range of benefits such as a low arrangement fee, and is available for new purchase, refinance and to release additional capital, with no penalty for lump sum payments.
- Overall Islamic Banking provides a safe banking alternative for the UK consumer – safety for their money in keeping with ethical and Sharia’a principles.
Ends
About Islamic Bank of Britain
Islamic Bank of Britain has pioneered Sharia’a compliant retail banking in the UK and has launched a wide range of products, including Current Accounts, Savings Accounts and Personal Finance. The bank was also the first to introduce Sharia’a compliant Business Banking to the UK, and now offers a wide range of institutional and business banking products and services, including Commercial Property Finance.
Several of the bank’s products remain unique in the UK retail market (e.g. Sharia’a compliant Personal Finance and Sharia’a compliant Savings Accounts).
The bank is authorised and regulated by the Financial Services Authority and meets UK banking regulations and strict safeguards for customer deposits. All products offered by the bank are fully approved by the bank’s Sharia’a Supervisory Committee (SSC).
Sharia’a compliant banking operates without the use of interest. The products that are offered are structured in a different way to those provided by conventional banks.
Whilst the bank offers products and services that are designed in accordance with Sharia’a principles, it is an inclusive bank and welcomes customers of all faiths.
Notes to editors:
Interviews with Islamic Bank of Britain are available on request.
The bank should only be referred to as “Islamic Bank of Britain”. If abbreviated please use “IBB”.
ENDS
Issued by Islamic Bank of Britain, Edgbaston House, 3 Duchess Place, Birmingham B16 8NH