Coming together for ethical finance
18-24 October was ‘Good Money Week’ in the UK. The week connected individuals with financial advisers, charities, student groups, faith & community groups and financial institutions to raise awareness of the importance of sustainable and ethical investment and finance.
Al Rayan Bank fully supports this campaign as it aims to raise awareness of sustainable, responsible and ethical finance to help people make good money choices. Our bank is founded and run according to the ethical principles of Islamic finance: equitable distribution for everyone, fair trading, prudent spending, and the well-being of the community as a whole. We take these ethical responsibilities very seriously.
Did you know the following five facts about Al Rayan Bank and its ethical approach to banking:
- We never invest your money in unethical activities, such as gambling, pornography, speculation, tobacco, arms and other commodities not in keeping with the values of Islam. Deposits are invested in asset backed, relatively secure commodities such as property or metals.
- As interest, or riba, is strictly forbidden in Islamic law, it is understood that we share in the risk and reward of any transaction with our customers. However, you may not be aware that we do not participate in any interest bearing activity – or any speculative activity. This includes derivative and fixed income instruments, such as options, warrants, swaps, futures, auction rate securities, and currency options, as well as structured notes on assets.
- We have an internal ethics (Sharia compliance) department that monitors our products and how we conduct our business, ensuring that everything we do is in line with the ethical principles of Islam.
- Our products are reviewed and approved prior to launch by an external and independent ethics committee (known as the Sharia Supervisory Committee).
- We do not charge arbitrary fees to our customers. Our charges only ever reflect the time and effort that our employees have put in.