The Islamic Bank of Britain (IBB) describes itself as “fully sharia-compliant and ethical”. In following Muslim principles, it rejects charging interest or profiting from industries that it regards as immoral.
The IBB makes use of “profit-sharing” and “risk-sharing” as an alternative to interest (although it is worth noting that Muslims differ from each other on their interpretation of what constitutes interest). Savings accounts customers, rather than gaining interest, gain a share of the profits from the bank’s investments.
The bank rules out profiting from “financial instruments based on speculation” or from investments in alcohol, pornography or tobacco. Arms and fossil fuels are not mentioned explicitly. It aims to be “community-oriented” and to be an integral part of the local communities in which it operates.
The IBB welcomes customers regardless of religion. It offers both current accounts and savings accounts. It also offers an alternative to mortgages, by which the bank buys a house and rents it to the customer until the cost of the house has been paid off, when it is handed over to the customer.