The Islamic banking system is embedded in Islamic law and ethics and is a solution specifically suited to banking customers who want to adhere to Shari’ah requirements.
CEO of First National Bank (FNB) Islamic Banking Amman Muhammad says Islamic banking is a credible alternative to conventional or mainstream banking for all South Africans, not just Muslims.
Muhammad was speaking to The Citizen at the institution’s offices in Sandton recently. He explained that the banking system is embedded in Islamic law and ethics.
It is a solution specifically suited to banking customers who want to observe and adhere to Shari’ah requirements, he added.
Amman Muhammad explain more about Islamic banking
An April S&P Global Ratings report on Islamic Finance found that it expected a high-single-digit growth in 2024-2025 after an increase of 8% in 2023 (excluding Iran).
Not only for Muslims
Muhammad said Islamic banking also takes into account “other prescriptions” that the Islamic faith has set out.
“This includes not to partake in elements of gambling, certainty in contract whether the structure or product is Halaal or Haraam, acceptable or not acceptable for a Muslim. There are many factors one should take into account when actually putting the construct of Islamic banking together.”
ALSO READ: FNB delivers strong annual results and sustained growth
Muhammad said Islamic banking is not exclusively for Muslims.
“Islamic banking is premised upon Islamic principles and the rules of the Shari’ah, which is Islamic law. But I think it is very important to note that Islamic banking is available to anyone who chooses, irrespective of their religion, creed or their race.
“We’ve worked with FNB that caters to the demands of all of South Africa. Given the very diverse population we have in South Africa, FNB, 20 years ago when we started this, started taking into account the needs of all South Africans.” Muhammad said.
Compliance
Muhammad said the first product Islamic banking launched was vehicle finance.
“Since then, we’ve added and grown. Today we’re close to being fully-fledged in terms of a product offering that covers all elements of transactional, investment, lending and even Islamic insurance cover.”
Muhammad said extensive study and analysis have gone into the principles of Islamic banking. He added that within the Islamic economics and finance space, FNB has a consensus of multiple Islamic scholars and bodies that allow FNB Islamic Banking to operate.
ALSO READ: Islamic Banking: Here’s everything you need to know
