Noticed this bank new to the market recentley. any comment would be welcomed

Friday Papers: UK's first Islamic bank to float - bid news and gossip
Published: 07:51 Fri 27 Aug 2004
By Phill Cozens, Stockmarket Correspondent


UK's first Islamic bank has confirmed it is seeking a 40 million float on AIM.

The Islamic Bank of Britain operates entirely within Sharia law, which means it does not charge or offer customers interest. For example instead of offering mortgages with interest payments the bank will buy a property and then sell it back to the resident at a premium via fixed monthly payments.


The 40 million will be raised through an initial public offering and private placing of 160 million shares at 25p each.

This share is unlikely to do well.

I heard it's going like a bomb!

You would need a microscope to tell the difference between that property purchase scheme and a normal interest-bearing repayment mortgage.

So....... let me get this straight.......

The only way that the bank can make a profit (assuming that they want to make a profit) is by having one string to it's bow, namely buying the property in question and then selling it to the person who really wants to buy it at a premium ?

I can see the wisdom in that and of course I would guess that there would be far fewer defaulters to worry about. I can see it making money over the long term, but not as much by far as the major players at the moment.

It HAS to carry out fundamental functions of a bank, doesn't it ?
It HAS to invest it's money just like any other bank, doesn't it ?

Anyone give me a starter for 10 so that I can DMOR ?

I'm keeping my eye on it. It's an interesting one.......

Of course it does have a ready made customer base. 2 million Muslims in Britian.

And just think on the off chance it takes off where else can you buy a bank for 28p

http://www.islamic-bank.com/islamicbanklive/GuestHome/1/Home/1/Home.jsp

There's a good place to start your research. It has Muslim and non-Muslim customers. And it pays a "profit dividend" rather than interest. I need to look at the basis on which it pays it and how it is calculated.

Hmmmm..... interesting Bond........ very interesting

They are opening branches in Birmingham next year.I know a lot of musliams up there. I`ll make a few calls see what the interest is. They are also geting into internet banking. just have a feeling about this one. Mind you, that means nothing going on my track record! Ho Ho

I am a muslim and was thinking of getting my Mortgage from them. I think there will be a lot of muslims taking up their sharia compliant Mortgage.

Hi Azhar....... Can you tell me whether the cost of the "loan" compares favourably with a Standard variable rate mortgage offered by other lenders ? And if there are any drawbacks ?

Thanx...

Some of my friends have taken mortgages with them recently and have said the costs per month are similar. The draw back is that the deeds are with the bank and not on your name.

I'm considering a business plan for an anglo-saxon bank of saudi arabia.

I'm considering buying some IBB stock.......... but if he'd said no, it's dirt cheap, I would have left it alone...........

Shukrya

i'm considering a plan for a Christian bank of Saudi Arabia.

Mmm well good luck in your plan but doubt it will get beyond your planning stage. It could be construed as spreading Christianity. and they are not as tolerant over there as the UK.

a

a

a

a