The Qur`an makes it clear that interest, or riba, is forbidden.
Conventional banking, which is interest based, is therefore not suitable
The Qur’an does permit trade as a method of generating wealth and
this is the basis for Islamic banking. It operates without interest to
offer approved Sharia compliant financial products. These are based on
Islamic finance principles involving trade, such as leasing, investments
and partnership. With Islamic banks Muslims can save their money, buy
their homes and carry out their day to day banking in a Sharia compliant
Some Muslim customers stay with conventional banks and simply do not
keep the interest they earn. However, what they may not know is that,
indirectly, this can provide funding to other customers for activities
that are not permitted in Islam, including interest-based lending. For
example, a Muslim customer’s deposits may be partly, or fully, used to
provide an interest-based loan to fund a casino or brewery. This is not
permitted according to Sharia. Islamic banking, therefore, provides the
certainty to Muslim customers that their money, which is with the bank
in a savings, current or business banking account, is not being used in a
way that is against Sharia principles.
Islamic finance is now widely and competitively available in the UK
and consumers have a real choice about how they manage their finances.
By choosing an Islamic bank, Muslims have the peace of mind that their
money is working for them and still in line with their faith.