Financial Times FT.com

Three new Islamic banks grow steadily

By David Oakley, Capital Markets Correspondent

Published: November 9 2008 19:48 | Last updated: November 9 2008 19:48

Launching a bank in the face of the worst financial crisis in almost 80 years does not appear to make business sense.

But that is precisely what investors in two of Britain’s five Islamic banks did as demand continued to grow in Europe for financial products that avoided paying interest, in line with strict religious rules. These products pay profits from an underlying business or rent from a building used as collateral to raise money.

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