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Wednesday, 4th November 2009 Change Date Latest Issue

New business bank account for Muslims

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Published Date: 03 April 2007
LLOYDS TSB today launched the UK's first high street business bank account to be compliant 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.

Truett Tate, group executive director of wholesale and international banking at Lloyds TSB, said:

"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, welcomed today's launch.

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



Page 1 of 1

  • Last Updated: 03 April 2007 12:17 PM
  • Source: Edinburgh Evening News
  • Location: Edinburgh
  • Related Topics: Muslim issues , Lloyds TSB
 
1

Pen Fold,

Here 03/04/2007 11:26:17

i don't agree with paying interest either. wonder if, as a non-muslim, i will be offered this type of account???

wonder if they'll next be starting other faith only accounts???

seriously though, not really a new concept. has been around many years in terms of mortgages. "interest" is still paid but is defined as a "rental" payment to the bank.

assume the business account will work along similar lines.

2

Richard Head,

03/04/2007 11:29:31

I'll have one Moslem mortgage please.

3

,

03/04/2007 11:34:19
Comment Removed By Administrator
Reason: Scotsman Import, Original comment id: 499363, Article id was mapped to record!
4

Wingman,

Edinburgh, Scotland , United Kingdom 03/04/2007 11:35:04

Makes you wonder where this is all going. Integration by division, interesting concept ?

5

King Banana,

by the window 03/04/2007 11:36:19

No paying of interest? My account's been abiding by Shariah law for years then...

6

G.,

03/04/2007 11:43:20

I wonder if the muslim businesses that profit from selling alcohol, banned by sharia law, will be allowed these loans?

7

jim lad,

the capital 03/04/2007 11:45:06

#3
Is this the Paul Voltaire tell the world i'm gay day? cause i'm not bovvered or interested.

8

Paul Voltaire,

03/04/2007 11:58:49

#7
It is just mad Mario and his obsesssions.

9

,

03/04/2007 12:08:30
Comment Removed By Administrator
Reason:
10

Paul Claire,

03/04/2007 12:08:31

#8
Have you heard them live?

11

Paul Astaire,

03/04/2007 12:25:54

If the money is not invested by the bank, how do they justify the running costs of the account.

Does it have separate charges or is the cost borne by the other accounts?

12

Jockyw,

03/04/2007 12:30:52

Is this to check the movement of monies I wonder?
And where's the Jewish, Christian etc accounts?

13

Paul Pestaire,

03/04/2007 12:39:24

Well said, Turkish Hexagram.

14

Ellen,

Edinburgh 03/04/2007 12:40:03

Will there be separate queues in the banks for Muslims and non-muslims. Hurray! Apartheid banking.

15

Ellen,

Edinburgh 03/04/2007 12:40:07

Will there be separate queues in the banks for Muslims and non-muslims? Hurray! Apartheid banking.

16

Paul Derrière,

03/04/2007 12:59:20

Hexagram, someone has Shatkona great height with that statement.

17

alex paterson,

embra 03/04/2007 13:15:07

Shazia Saleem,Sure she will welcome it,Dont trust TSB, or Halal,Guarenteed the runs and v vomiting.

18

Cynicaltalk,

E Lothian 03/04/2007 13:36:27

I'm off to the middle east to open up a business.

I'll let you know if the banks bend over backwards for me and introduce new banking packages that will pay me interest etc..

19

Ocean11,

03/04/2007 13:43:03

Whatever happened the old chat about assimilation into society. IS this just a crass marketing ploy?

20

Billy,

Germany 03/04/2007 13:46:10

What about all the "Muslim" Companies that happily
accumulate interest payments. Frankly, impossible to believe, that muslims do not use high interest accounts when dealing in thousands. As redicolous as the jews claiming they have left the land untoiled every 3 or 4 years ?, as instructed in the bible, simply by signing it , temporarily over to an arab worker.
Next they will be telling us muslims don't drink booze
lech at women and pray 5 times a day. I have yet to meet one who falls into that catagory.
PS on 9/11 , I was on-route , through the middle east to malaysia. Travelling on a muslim airline, we had a screen showing the posistion of mecca , so the muslims could if they wished pray 5 times a day. A week later on route back to Frankfurt, the screen was off , there was no praying or calling to pray. Believe it or not, they even let the yanks on board openly drink from smuggled booze. It's all a "fashion statement".
You will also find that you will be offered alcohol, in most muslim countries. In Indonesia (Largest Muslim population in the world) it's called "Special Fanta"
.

21

Commentator,

Edinburgh 03/04/2007 14:18:24

Readers may find this link interesting. It explains how different aspects of Islamic banking works: http://www.hsbcamanah.com/hsbc/amanah_banking/glossary#mu...

At the end of the day, the borrower/lender is still paying/gaining interest on the initial sum, only it's not called 'interest' as we would call it.

'Not paying interest' can be read the same way as 'we are a peace-loving religion'. Bunch of hypocrits, the lot of them!

22

Mandy Battlements,

03/04/2007 14:24:06

#25 Exactly.

Muslims try to drive a hard bargain as a way of life. And, no, this is not a racist sentiment. It is my experience over many years in business.

Muslims can integrate with local customs when it suits them (and their pockets) and it is disappointing that Lloyds TSB are pulling this cheap publicity stunt.

23

Mandy Battlements,

03/04/2007 14:46:22

#27

Drug dealers respond to "a need" too.

24

Councillor Malfeasance,

03/04/2007 15:13:12

I too respond to peoples needs - as long as they respond to mine.

25

I'm no really here,

03/04/2007 18:35:21

I can't decide whether this is racist, sectarian or what? If I went into a bank and asked for Christian only service, do you think they would listen??

26

Dave From Barra,

Western Isles 03/04/2007 19:58:35

I'm not sure what to make of this either.How do you prove somebody is a muslim when opening a bank account? In order to comply with the EU, surely this must be opne to everybody,no?

27

Adam Apple,

Edinburgh 03/04/2007 20:44:19

#33, This type of Bank account is not only for Muslims, but for all.
Infact see this BBC news story on non-Muslims opening Shariah compliant accounts as a means of ethical banking.

http://news.bbc.co.uk/1/hi/business/6168800.stm


 

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