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Wednesday 22 Jul 2015 - 14:05 Makkah mean time-6-10-1436
(Image from DW)
Frankfurt, (IINA) - Germany has opened its first Islamic bank representing a full range of banking services in accordance with the laws of Sharia. The Frankfurt-based bank, called KT Bank, is owned by Kuveyt Turk, the largest Islamic banking institution in Turkey, according o media reports.
Despite charging interest is prohibited, but some analysts see little difference to the way normal banks operate.
KT Bank is a subsidiary of KT Katilim Bankasi, based in Istanbul, and has been operating as a financial services company in the German city of Mannheim for five years. Earlier this year, it received its banking license from the German banking regulator BaFin.
The Sharia law Islamic banks prohibit bank from charging interest on loans, as well as to take part in investments, especially those considered haram, like gambling, weapons, and alcohol…
Among 4.5 million Muslims residing in Germany, 21 percent are ready to use the services of an Islamic bank, said the Head of Kuveyt Turk Bank Kemal Ozan referring to a poll carried out by his company. However, Kuveyt Turk noted that it focuses not only on the Muslims living in Germany, but expects to approach the entire German market.
Islamic banks have already proved quite successful in the markets of England and France. UK houses five Islamic banks and the Islamic Bank of Britain reported a 55 percent increase in deposits of non-Muslims over 2014. The bank associates these figures with the Barclays’ rate rigging scandal.
The UK has also become the first non-Muslim country to issue sukuk – an Islamic bond equivalent similar to a participation certificate. This type of bond is also utilized in Hong Kong, Luxembourg and South Africa.
SM/IINA
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