Bank launches first 'Muslim bank account'

Lloyds TSB launched the UK's first high street business bank account today 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: "The entrepreneurial spirit in the UK is truly something to be proud off, and Muslim businesses are making a phenomenal contribution to this through their creativity and incredible work ethic.

"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.

"Islam is a way of life for me and I know that once I have got my business off the ground it is going to be a huge part of my life, so it is important that I am comfortable with every aspect of the way it is run.

"Until now aspiring Muslim entrepreneurs have had limited choices when it comes to financing their business ideas and I know this has held some people back."

Copyright Press Association 2007

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