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Dutch Central Bank report highlights Sharia banking

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Thu, 2007/06/21 - 00:58 by Muslim Investor

The report also looks at the growth in interest in Islamic banking. It says that an increasing number of Dutch financial institutions are interested in offering banking according to Sharia principles, which do not allow interest to be paid on loans and shun investment in the drinks and weapons industry.

While the risk profiles and organisational structures in Islamic banking appear to deviate from traditional banking, the current supervisory framework does offer enough scope to accommodate Islamic banks, the DNB says.

Worldwide, the market for Islamic banking has gone up 15% a year since the beginning of the century, DNB says. Demand in the Netherlands will grow ‘because of the increase in the size of the Islamic population, its educational levels and wealth.’

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