Financial Times FT.com

Islamic banking: Sharia-compliant institutions buck trend

By David Oakley, Capital Markets Correspondent

Published: November 24 2008 01:12 | Last updated: November 24 2008 01:12

The banking community in the City of London has been hit hard by the economic crisis. But one area of the UK’s financial sector has emerged relatively unscathed from the credit crunch – the new Islamic banks.

These institutions are expanding their balance sheets as demand continues to grow in Europe for financial products that avoid paying interest, in line with strict religious rules. These products instead pay profits from an underlying business or rent from a building used as collateral to raise money.

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