Islamic banking is based on the concept of risk sharing both profit and risk. The charging of interest is strictly forbidden in financial and commercial transactions. The provider of funds is not automatically entitled to payment in full of principle and periodic distribution of profits. That risk is shared by both the finance provider and the customer.
The Islamic banking industry is becoming increasingly mainstream as banks all over the world respond to the opportunities presented by this rapidly growing new customer segment with a range of Sharia-compliant products. Assets of financial institutions offering Islamic products and services have soared by almost 25% a year over the past decade to about 300 billion USD today. Recognizing the growing importance of Islamic banking and the growing demand for financial services that meet ethical standards, an increasing number of major international banks have opened Islamic banking “windows” tailored to the needs of Islamic investors from a global Muslim population of over 1 billion, including 11 million Muslims in Europe and 6 million the USA. A sizable proportion of Islamic banking customers are non-Muslims who value the ethical financial principles of Sharia-compliant banking.
East Africa Bank feels a keen sense of responsibility to contribute to the communities that we serve.
- No interest received or charged.
- Financing is generally asset-based
- Excessive risk-taking and the use of complex financial derivatives is avoided.
- Only lawful activities can be supported by the bank.
- The bank is a commercial enterprise with a clear profit-making mission.
- Sharia-compliance is not a hindrance to efficiency and effectiveness.
- Islamic banking offers the best of both worlds: the profit-driven approach of traditional banking within the framework of universal ethical and moral values.
The bank is firmly opposed to any discrimination on the basis on ethnicity, religion, race or culture. East Africa Bank will continue to uphold universal values of solidarity, inclusiveness and protection of the environment.