Opportunities will increase for German Muslims to invest their money in a “halal” way. So far, Islamic banking is not available in Germany, although well established in the UK, where there is a smaller Muslim population. Now the banking supervision Bakin recently organized a conference on Islamic banking, and the first licence has been given out to an Islamic bank in Mannheim that will open in January.
Christian-Democrat local politician Reinhard Löffler praises the initiative. A believing Christian, he considers Islamic banking a potential third way between capitalism and socialism. The “ethical dilapidation” of the current banking system calls for innovative solutions.
Germany’s Muslims are finally getting a bank offering financial products that comply with Shari’a law. It is a market worth billions, and one that many major banks around the world have long discovered.
There are four million Muslims living in Germany. They eat, drink and pray in accordance with the precepts of the Prophet Muhammad. But when it comes to monetary transactions, the principles of the Koran have played hardly any role in Germany. That is about to change.
Early next year, the first Islamic bank in Germany to offer products that are in compliance with Shari’a law will open its doors. The bank, Kuveyt Türk Beteiligungsbank, will open a branch in the downtown area of Mannheim, a city in western Germany, and branches in other cities are also planned.
The regulators with Germany’s Federal Financial Services Authority, known as BaFin, recently issued a limited license to the subsidiary of a Turkish-Kuwaiti bank. It is only permitted to collect funds that are transferred to accounts in Turkey that conform to Islamic rules.