Page last updated at 12:23 GMT, Friday, 19 February 2010

Islamic finance system 'may benefit Guernsey'

A Guernsey investment expert believes the island could benefit from adopting an Islamic finance system.

The asset-based system avoids most speculative investment and borrowing. The bank and investors involved share the risks and rewards.

Toby Birch, from Birch Assets Ltd, said it was similar to a system adopted at the end of the Napoleonic war.

He said this system had proved very successful and led to the island's low tax rates.

Mr Birch said it could work again for the island.

"If you just stand in the middle of St Peter Port, look at the town market, look at the dock, look at Elizabeth College, not a penny of interest was paid to build these things," he said.

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