The account, which complies with Islamic law (Shariah), is available across the bank's 2,000 branches, and will be open to the UK's estimated 100,000 Muslim firms.

The new Islamic Business and Corporate account is the latest addition to a range of Islamic banking services for Muslims offered by Lloyds TSB. Last year, following research that showed three quarters of the UK's Muslim population were interested in Islamic financial services, the bank launched a series of Shariah compliant products, including an Islamic current account, student account, mortgage and investment fund.

Islamic law states that businesses, as well as individuals, should not pay or receive interest. The rules also say that individuals and businesses can only invest in certain companies, prohibiting dealings in industries such as gambling or alcohol. In order to ensure that the account is fully compliant with Islamic law, Lloyds TSB has consulted with its board of renowned Islamic scholars.

Truett Tate, Group Executive Director, Wholesale & International Banking, said: "The entrepreneurial spirit in the UK is truly something to be proud of, and Muslim businesses are making a phenomenal contribution to this through their creativity and incredible work ethic. "Britain is rapidly establishing itself as a centre of Islamic finance, and Lloyds TSB has been at the forefront of this growth. By introducing an account for businesses, we're consolidating our position as the UK's leading provider of Islamic financial services and making it possible for Britain's Muslim businesses and aspiring entrepreneurs to bank according to their principles."

Shazia Saleem, 23, a British Muslim entrepreneur who is establishing her own Halal food business, said: "It means a lot to me that I now have the option of banking in line with my faith. Islam is a way of life for me and I know that once I have got my business off the ground it is going to be a huge part of my life, so is important that I am comfortable with every aspect of the way it is run.

"Until now aspiring Muslim entrepreneurs have had limited choices when it comes to financing their business ideas and I know this has held some people back. It's great that a high street bank is offering an account that meets both my religious and business needs. I am sure this will encourage other Muslims to put their business ideas into action."

The launch of the Islamic Business and Corporate account establishes Lloyds TSB as the largest provider of Islamic banking across the UK. Customers will be able to make use of the bank's 2,000 branches and 4,000 Cashpoint machines, as well as Internet and telephone services. They will also have access to a named relationship manager.

In order to comply with Islamic law, the Islamic Business and Corporate account offers no credit interest and no overdraft facility, but does provide all the other services available to traditional business and corporate account holders.