New business bank account for Muslims

Published on Tuesday 3 April 2007 12:04

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."