23 October 2017
visit www.avoka.com

Lloyds TSB introduces Shariah-compliant money transfer account

24 January 2008  |  5865 views  |  0 Lloyds web screen shot logo

UK high street bank Lloyds TSB has launched a Shariah-compliant nostro account that enables customers to transfer money around the world in line with Islamic principles.

The new account does not pay interest or provide an overdraft facility, in line with Shariah law. In addition, the account prevents any funds being invested in industries - such as alcohol and gambling - that are prohibited under Islam.

Lloyds TSB says the account, which is aimed at the UK's two million Muslims and 100,000 Muslim firms, is the first of its kind to be offered by a mainstream western bank.

Whilst many Muslim customers make and receive international payments through an estimated 250 Islamic banks worldwide, the process of transferring the money between banks has not been in line with Islamic principles, says the UK bank.

"We've designed this account to help the growing number of Islamic banks across the world, which deal with our customers' transactions," says Diana Brightmore-Armour, CEO corporate banking and co-head corporate markets, Lloyds TSB. "We're providing the missing link in the chain, so now any person or business receiving payments from abroad into their own Islamic account knows the money will be dealt with according to Islamic law, from start to finish."

In the last two years Lloyds TSB has introduced Shariah-compliant current and business and corporate accounts as well as a mortgage product and investment fund.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Bank Islam selects T24 for Shariah-compliant banking

Bank Islam selects T24 for Shariah-compliant banking

14 January 2008  |  10013 views  |  0 comments
Dawood Islamic Bank live with SunGard Web banking product

Dawood Islamic Bank live with SunGard Web banking product

08 January 2008  |  6364 views  |  0 comments
Islamic Bank of Asia signs for Flexcube

Islamic Bank of Asia signs for Flexcube

05 November 2007  |  5076 views  |  0 comments
Malaysia's eKSB implements 'Islamic Payment Switch'

Malaysia's eKSB implements 'Islamic Payment Switch'

12 July 2007  |  8223 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.innotribe.comvisit www.atos.net

Top topics

Most viewed Most shared
Mastercard to roll out blockchain APIMastercard to roll out blockchain API
19146 views comments | 28 tweets | 40 linkedin
HSBC partners Bud for open banking trialHSBC partners Bud for open banking trial
15118 views comments | 23 tweets | 32 linkedin
Sibos 2017: API or the highwaySibos 2017: API or the highway
10941 views comments | 12 tweets | 23 linkedin
Eight banks form joint venture to launch blockchain trade platformEight banks form joint venture to launch b...
8978 views comments | 14 tweets | 28 linkedin

Featured job

Competitive
London, UK (or flexible)

Find your next job