Muslim bank account unveiled

Lloyds TSB has launched a new checking account aimed at the UK's two million Muslims.

13:06 15 February 2005

Lloyds TSB has launched a new checking account aimed at the UK's two million Muslims.

In order to comply with Islamic or Shariah law, Britain's fifth largest bank will offer an account that does not pay interest or provide any credit.

"Our research shows that over three-quarters of British Muslims want banking services that fit with their faith,' Gordon Rankin, current accounts director at Lloyds TSB, stated.

"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.'

The move follows the opening of a specialist Islamic bank in the UK and HSBC's introduction of Shariah-compliant banking services last year.

Other mainstream UK banks are likely to follow suit to tap into the Muslim market as lending margins narrow and borrowing slows.