The bank’s headquarters are in Birmingham, with its first branch opening this September in Edgware Road, London.
Michael Hanlon, managing director of the Islamic Bank of Britain, said: “As Islamic banking operates without the use of interest, the products that we offer our customers are structured in a different way to those in conventional banks.”
The Islamic Bank differs from a traditional bank as it will deal in real items rather than lend money. If the customer wishes to buy a computer, the bank would buy it and then sell it to the customer at a fixed price, or lease it and charge a rental fee until the item was fully paid.
While unable to talk about mortgages at present, the Bank insists that once its products are finished it will be talking to brokers.
Tariq Mahmood, managing director of Select Finance Consultants, said: “It is positive step for the market. I am sure that in time it will become a competitive lending provider for all, not only Muslims.”
Roger Smith, group development director at the West Bromwich Building Society, commented: “The Islamic market is currently still underserved. The Islamic Bank of Britain is exploring a potentially huge marketplace.”
