Islamic Banking Summit

With an estimated 2.9 million Muslims now resident in the UK, and around 2.7 million in the USA, Islam is currently the second-largest religion world-wide.  It has more than 1.5 billion followers, and is also the fastest-growing religion in the world.

With such huge numbers of potential customers in need of banking facilities consistent with their religious beliefs, customs and rules, there is an increasing demand for and growing awareness of the importance of Islamic Banking.

 The term Islamic Banking has recently come into regular use, and refers to banking activity which is compliant with Islamic or Shari’ah law. 

The main point of Islamic Banking is that it gives devout Muslims access to banking facilities which respect the principles of their faith and of Shari’ah Law

The Islamic prohibition of Riba is the main problem for Muslims when it comes to setting up a bank account.  Survival in modern day society is virtually dependent on having a personal bank account: these days everyone, regardless of race or religion, needs to have their own account in order to carry basic transactions such as receiving a salary, obtaining state benefits or acquiring a mortgage to buy a house.

The trouble is, most modern, Western-style bank accounts pay interest, which is a complete ‘no-no’ for any practicing Muslim; hence the increasing requirement for a Shari’ah-compliant alternative.

According to TheCityUK, created in 2010 to support the UK financial services sector, there are now at least 22 banks offering Islamic banking products in the UK, higher than in any other Western country. Globally the market for Islamic financial services rose above $1 billion in 2009 for the first time; not bad in the current economic climate, so the future looks bright for Islamic Banking.

I was therefore very interested to hear that TheCityUK hosted the 1^st International Islamic Banking Finance Summit in London last week.

Sessions covered include:

• The regulation of the Islamic Financial & Banking Services Industry: key drivers for cross-border harmony and future growth?
• International Islamic Retail Banking: does innovation hold the key to success?
• Islamic Capital Markets & Sukuk - quantifying the success: can Sukuk help solve the global debt problem?
• Islamic Funds, Assets & Wealth Management - broadening the access, does better product distribution hold the key?
• Takaful & Re-Takaful - strategies for future growth & diversification?
• Open Shariah discussion: philosophy of Islamic Banking & Finance system - role of the Shariah

Did any Banking Reform Bulletin readers attend, and if so, what was it like?

PS:  To learn more about Islamic Banking, and for a deeper insight into a whole host of other topics relating to banking and regulatory reform, why not sign up for Inside Track? It's free!

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