First Islamic UK business account

The accounts, offered throughout the firm's 2,000 strong branch network, will not pay interest in order to meet the requirements of Islamic Sharia law. In addition, money held in the accounts cannot be invested in certain industries such as gambling or alcohol.

Lloyds TSB has targeted the Muslim community with other Sharia-compliant financial products since 2005.

The bank already offers an Islamic current account, student account, mortgage and investments funds to non-business customers.

Accounts shunned

PRINCIPLES OF ISLAMIC BANKING

• All money must be invested in industries Muslims consider ethical
• The giving or receiving of interest is forbidden
• Money cannot be simply traded for money
• Money can be used to buy goods or services, which can then be sold for a profit

Q&A: Islamic finance

Members of Britain's Muslim community own an estimated 100,000 businesses.

Traditionally, some Muslim business people have shunned mainstream financial services and High Street banks because their products do not comply with Sharia law.

Under Sharia Islamic law, making money simply from money - such as charging interest - is usury, and is not permitted.

Instead, wealth should be generated only through legitimate trade and investment in assets.

Investment in companies involved with alcohol, gambling, tobacco and pornography is also strictly off limits.

Shazia Saleem, 23, an Halal food entrepreneur, welcomed the launch of a Sharia-compliant bank account.

"It means a lot to me that I now have the option of banking in line with my faith," Ms Saleem said.

"Islam is a way of life for me... so it is important that I am comfortable with every aspect of the way it (the bank account) is run," she added.

RELATED INTERNET LINKS
Lloyds TSB
Islamic Bank of Britain
Institute of Islamic Banking and Insurance
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