First Islamic UK business account

[strider]

First Islamic UK business account

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http://newsimg.bbc.co.uk/media/image...ydstsb_203.jpg

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Lloyds TSB is to offer the UK's first business bank account which complies with Islamic law throughout its 2,000 strong branch network.

The accounts will not pay interest in order to meet the requirements of Islamic Sharia law.

In addition, money held in the accounts cannot be invested in certain industries such as gambling or alcohol.

Lloyds TSB has targeted the Muslim community with other Sharia-compliant financial products since 2005.

The bank already offers an Islamic current account, student account, mortgage and investments funds to non-business customers.

Accounts shunned
Members of Britain's Muslim community own an estimated 100,000 businesses.

Traditionally, some Muslim business people have shunned mainstream financial services and High Street banks because their products do not comply with Sharia law.

Under Sharia Islamic law, making money simply from money - such as charging interest - is usury, and is not permitted.

Instead, wealth should be generated only through legitimate trade and investment in assets.

Investment in companies involved with alcohol, gambling, tobacco and pornography is also strictly off limits.

Shazia Saleem, 23, an Halal food entrepreneur, welcomed the launch of a Sharia-compliant bank account.

"It means a lot to me that I now have the option of banking in line with my faith," Ms Saleem said.

"Islam is a way of life for me... so it is important that I am comfortable with every aspect of the way it (the bank account) is run," she added.

Q & A: Islamic Finance

Source


:thumbs_up

[Uthman]

First Islamic UK business account

Lloyds TSB is to offer the UK's first business bank account which complies with Islamic law throughout its 2,000 strong branch network. The accounts will not pay interest in order to meet the requirements of Islamic Sharia law.


In addition, money held in the accounts cannot be invested in certain industries such as gambling or alcohol.
Lloyds TSB has targeted the Muslim community with other Sharia-compliant financial products since 2005.
The bank already offers an Islamic current account, student account, mortgage and investments funds to non-business customers.

Accounts shunned




PRINCIPLES OF ISLAMIC BANKING
All money must be invested in industries Muslims consider ethical
The giving or receiving of interest is forbidden
Money cannot be simply traded for money
Money can be used to buy goods or services, which can then be sold for a profit


Members of Britain's Muslim community own an estimated 100,000 businesses.


Traditionally, some Muslim business people have shunned mainstream financial services and High Street banks because their products do not comply with Sharia law.


Under Sharia Islamic law, making money simply from money - such as charging interest - is usury, and is not permitted.
Instead, wealth should be generated only through legitimate trade and investment in assets.


Investment in companies involved with alcohol, gambling, tobacco and pornography is also strictly off limits.


Shazia Saleem, 23, an Halal food entrepreneur, welcomed the launch of a Sharia-compliant bank account.
"It means a lot to me that I now have the option of banking in line with my faith," Ms Saleem said.
"Islam is a way of life for me... so it is important that I am comfortable with every aspect of the way it (the bank account) is run," she added.



Story from BBC NEWS:
http://news.bbc.co.uk/go/pr/fr/-/1/h...ss/6518433.stm

Published: 2007/04/02 23:00:11 GMT

© BBC MMVII

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[Uthman]

Lloyds TSB has launched the UK's first High Street business bank account aimed at fitting in with Shariah law.


The Islamic Business and Corporate account is the latest financial product to be run in line with Shariah principles that forbid all forms of paying interest.


The service - which is aimed at the UK's estimated 100,000 Muslim firms - follows on from the growth of Islamic mortgages and personal loans in recent years.


Lloyds TSB said the new service for Muslim businesses will be available throughout its network of 2,000 branches.

No interest will be paid or received on the account and to ensure Shariah rules are met the bank said money will be ring-fenced and not invested.
"The entrepreneurial spirit in the UK is truly something to be proud off," said the group's Truett Tate.


"Muslim businesses are making a phenomenal contribution to this through their creativity and incredible work ethic.


"Britain is rapidly establishing itself as a centre of Islamic finance and Lloyds TSB has been at the forefront of this growth."


Shazia Saleem, a 23-year-old Muslim entrepreneur establishing a Halal food business, has welcomed the launch.
"It means a lot to me that I now have the option of banking in line with my faith," she said.

http://news.sky.com/skynews/article/...258820,00.html

[Muezzin]

Strider actually made her thread first, but it was awaiting approval, so I figured I'd just merge these threads. :)

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[Uthman]

:sl:

Or you could just delete mine. I'm not fussed. :)

:w:

[Muezzin]

Should be okay. Let's get discussing these articles then.

[Uthman]

:sl:

Not sure there is anything to discuss really.

Obviously I think it's a good thing. :)


:w:

[Joe98]

I work for a bank too.

If we could get money without paying interest we would be very happy. Our cost of funds reduces remarkably!

Internally we have already been discussing this on a global basis. There was a large meeting at head office last month.

It seems muslims are good to do business with.

[Nσσя'υℓ Jαииαн]

MashaAllah thats good :D
You basically pointed out a benefit in not using interest lol.
I have this channel called bridges and they usually show the commercial for Sharia compliant :D
Neat. I should get my parents to look into it.

Peace

[Uthman]

:sl:

Yeah, my mother is also considering switching. She is currently with Natwest.

Smart move by Lloyds TSB. Should attract a lot more customers in the long-term.

:w: