Kuveyt Turk Bank is set to open doors in Frankfurt, Germany as Europe’s first fully-functional Islamic bank on 1 July.
The bank will be the first sharia-compliant bank in a European country and will operate as KT Bank.
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The bank will primarily target the four million Muslims living in Germany. Apart from them, it will also cater to non-Muslims, which includes retail and wholesale customers.
As per Islamic banking rules, the lender will refrain from speculative investments and will be backed only by tangible assets.
It will also refrain from participating in forbidden goods, services and projects, including businesses within the gambling and alcohol industries, which are deemed un-Islamic.
At the same time, the bank will not be allowed to charge interest on loans, but will be able to purchase and sell assets for a profit.
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By GlobalData
