Islamic finance 'to grow'
Consumers are becoming increasingly concerned about the moral implications of where their bank's money is going, it has been claimed.
The comments were made by a spokesperson for the Islamic Bank of Britain - who claimed that Islamic finance would be a key growth area in future for this reason.
This is because the alternative financial system is based on not charging interest - which is prohibited by the religion - preferring instead to lend on the basis of risk-sharing.
The spokesperson commented: "With growing awareness of consumer responsibility, customers are becoming more concerned about where their money goes and what it is used for.
"This is reflected not only by the emergence of Islamic banking, but also by the rapid growth of the ethical investment market as a whole."
Recent research from the Financial Services Authority estimated Islamic finance to be worth around £250 billion globally.
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