American banks and other financial institutions unwittingly tempt their Muslim clients to betray the tenets of Islam itself when they pay interest on Muslim-held accounts. If they wish to be truly solicitous of Muslim sensibilities, they will simply stop paying interest on all such accounts that can be identified as belonging to Muslims or Muslim-connected groups and associations. That will remove the temptation for Muslims to quietly pocket the interest and thereby commit what is clearly forbidden, haram, in Islam.

And the American banks, for quite different reasons, would also be happy.

This is what they call, in Business School, a win-win situation.

Posted by: Hugh at February 16, 2005 6:08 PM

Damned liberals selling Europe out to the Muslims.... uhhh, I mean, damn Capitalist billionaire financiers.

Posted by: Timbo at February 16, 2005 9:15 PM

From an American business perspective, the initial "using Other People's Money for free" possibility may seem tempting but muslims will figure out a way to extort $$ somehow, whether in the form of free checking, free savings, free toasters, no NSF check fees, no cashier check fees, etc. Apart from the capitulation to an islamic concept, the hidden financial costs are still to be revealed.

Posted by: 3812Michelle at February 16, 2005 9:24 PM

I still am rather unclear on whether Sharia prohibits interest or excessive interest. I have a hard time believing that people in countries like Saudi Arabia and Iran put their money in banks that
do not pay interest on accounts or charge interest
on loans.

Posted by: bgordon at February 17, 2005 12:11 AM

What's next Europe???

Posted by: Infidel One at February 17, 2005 2:46 AM

What's next Europe???

Posted by: Infidel One at February 17, 2005 2:46 AM

I also understood that it's excessive interest which is not permitted and that even then muslims should just pay interest in non-muslim countries. The problem here is of course not muslims asking for a favor, it's Western institutions like these banks giving it to them on a silver platter. They have no idea what it is they're actually supporting.

Posted by: Leveller at February 17, 2005 3:32 AM

I actually do not see what the fuss is. If this was the worst that Islam could demand of us, it would indeed be the harmless religion of peace that its apologists call it. "Ethical" accounts that do not invest in certain industries, and particular kinds of banking, are on offer, for instance, for Catholics, Evangelical Christians and environmentalists. No, the real danger lies elsewhere. This sort of thing only shows that there are a lot of Muslims in Britain - and we knew that already.

Posted by: Paolo at February 17, 2005 4:03 AM

February 16, 2005
UK: Lloyds TSB targets Muslim market
"The Muslim community is one of the fastest growing in the UK and is very much part of the fabric of British life." OK, but how far will British authorities and businesses go to accomodate Sharia for this growing community?

For similar US developments, see here.

From The Guardian, with thanks to the Constantinopolitan Irredentist:

Lloyds TSB today announced the launch of a current account that adheres to Islamic rules on finance. The account has been designed to comply fully with Islamic law, or sharia, which forbids the payment and receipt of interest, or riba. As such, the account will not pay interest on credit balances or have an overdraft facility.
The funds held by the bank on all shariah-compliant accounts will also be held according to Islamic law. Under shariah, Muslims are not allowed to invest in companies related to certain types of industry, such as alcohol, tobacco, pornography, armaments and gambling....

Gordon Rankin, current accounts director at Lloyds TSB, said: "The Muslim community is one of the fastest growing in the UK and is very much part of the fabric of British life. However, until now their banking needs have been largely uncatered for and many British Muslims have often had to bank in a way that is against their principles."

Posted at February 16, 2005 05:17 PM

Comments
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American banks and other financial institutions unwittingly tempt their Muslim clients to betray the tenets of Islam itself when they pay interest on Muslim-held accounts. If they wish to be truly solicitous of Muslim sensibilities, they will simply stop paying interest on all such accounts that can be identified as belonging to Muslims or Muslim-connected groups and associations. That will remove the temptation for Muslims to quietly pocket the interest and thereby commit what is clearly forbidden, haram, in Islam.

And the American banks, for quite different reasons, would also be happy.

This is what they call, in Business School, a win-win situation.

Posted by: Hugh at February 16, 2005 06:08 PM
Damned liberals selling Europe out to the Muslims.... uhhh, I mean, damn Capitalist billionaire financiers.

Posted by: Timbo at February 16, 2005 09:15 PM
From an American business perspective, the initial "using Other People's Money for free" possibility may seem tempting but muslims will figure out a way to extort $$ somehow, whether in the form of free checking, free savings, free toasters, no NSF check fees, no cashier check fees, etc. Apart from the capitulation to an islamic concept, the hidden financial costs are still to be revealed.

Posted by: 3812Michelle at February 16, 2005 09:24 PM
I still am rather unclear on whether Sharia prohibits interest or excessive interest. I have a hard time believing that people in countries like Saudi Arabia and Iran put their money in banks that
do not pay interest on accounts or charge interest
on loans.

Posted by: bgordon at February 17, 2005 12:11 AM

Actually, bgordon -- I gather from something I believe I read on JihadWatch, that it's pure Islamic smoke-and-mirrors. Some east coast US bank is now providing "halal" mortgages. Interest isn't charged per se, but rather the loan is structured in such a way as to conceal the interest built in.

I'm not an actuarial/finance-type, but my understanding is that the principal amount is not the actual sale/purchase price of the property in question, but rather a projected value at the end of the loan's term.

Posted by: waterdragon52 at February 17, 2005 9:19 AM

Whoops. Pardon the post above. Only wanted to reference Bgordon's post on when interest charges aren't interest charges.

Posted by: waterdragon52 at February 17, 2005 10:28 AM

Paolo,if this was the only thing they demanded from us,it would be perfect,i would also say,give it to them and let this be the last we heard from them.
But they always ask for more,for in fact they want the whole thing:turning western contry into islamic kaliphates,governed by shariah law.

Posted by: adela at February 17, 2005 3:42 PM

Adela: quite. But this is only a matter of a British bank trying to get more money out of Muslims. Believe me, if I know anything about British banks, I can tell you that it will be the Muslims who get the wrong end of the deal. One way or another, it has little to do with dhimmitude or the loss of human rights.

Posted by: Paolo at February 18, 2005 5:38 PM