Britain's first Islamic law compliant stand-alone High Street bank has opened for the first time in Scotland.
Al Rayan Bank, formerly the Islamic Bank of Britain (IBB), which has just over 2000 customers north of the border, has opened an office in Glasgow. The West Midlands-based bank will not pay or charge interest and is founded on an Islamic financial model in which the customer and the bank share the risk of any investment on agreed terms, and divide any profits between them. The move north comes some 12 years after IBB opened its first branch on Edgware Road in London.
A bank spokeswoman said that a key reason for the move was that it was able to form a partnership in Glasgow with the Islamic Finance Council, the advisory and developmental body, with which it shares its office location in Fitzroy Place, Glasgow. Cabinet secretary for economy, jobs and fair work, Keith Brown said: “Al Rayan Bank’s welcome decision to expand its operations into Scotland for the first time highlights the real opportunity offered by ethical finance. This announcement reflects Scotland’s growing profile in ethical finance."
The bank says it means Scottish customers will now have branch access to the UK’s largest range of Islamic retail banking products. This includes Sharia compliant home and property finance products that are tailored to the Scottish market, savings accounts, current accounts and business banking.