Lloyds TSB offers UK’s first Islamic business account
Lloyds TSB is launching the first business bank account which complies with Sharia law throughout its 2,000-strong branch network.
In compliance with Islamic law, the accounts do not pay interest and money held in the accounts will not be invested in industries that are concerned with alcohol, gambling, tobacco and pornography.
Lloyds TSB, the fifth largest provider of UK current accounts, is following other Sharia-compliant products that it has launched since 2005. The bank already has an Islamic current account, student account, and mortgage and investment funds to non-business customers.
The UK’s Muslim community owns in the region of 100,000 businesses and some Muslim businesspeople have shunned mainstream financial services and banks as they do not provide products compatible with the strictures of Islam.
Under the dictates of Sharia law, making money from money – such as charging interest – is usury and not permitted, with wealth being generated only through legitimate trade and investment in assets.
“This is an important step forward for me, as I need to be happy with every aspect of my banking in accordance with the conditions demanded by my religion,” said Shafique, an Essex-based restaurant entrepreneur.
“It’s good that I can conduct my banking in line with my faith and these sorts of products are most helpful for the Muslim community.”