Al Rayan Bank
|Headquarters||London and Birmingham, UK|
|Key people||Sultan Choudhury, Chief Executive Officer and Director|
|Revenue||GBP5.75 million (2013)|
|Net income||GBP4.4 million (2013)|
|Parent||Masraf Al Rayan|
Al Rayan Bank PLC (formerly known as Islamic Bank of Britain) is a commercial bank in the United Kingdom, established in August 2004 to offer Sharia compliant financial service products to British Muslims. The bank has branches in London, Birmingham, Manchester and Leicester and agencies in Dewsbury, Luton and Tooting. It is the first British bank claiming to operate, in its entirety, according to Islamic principles. Both Muslims and non-Muslims are also allowed to hold accounts with the bank.
The bank states that has five values: Sharia compliant, community orientated, secure, good value and pioneering. Faith is an important factor for the bank, and accordingly branches close on Friday afternoons to allow the staff to attend Jummah (Friday) prayers. The bank also has a Sharia department and an independent Sharia Supervisory Committee to ensure that its products are compliant with Islamic teachings.
As of 2010 the Islamic Bank of Britain serviced 50,531 customers.
Islamic Bank of Britain was formed by a group of investors from the Middle East to take advantage of the growing market for Sharia compliant financial services in the UK. In July 2002, consultants and advisors were employed to confirm if such type of bank was needed and if it would be accepted by the Financial Services Authority, FSA.
Potential investors were invited, mainly from the Persian Gulf, who put together a private placement document which allowed the company to raise £14 million in start up capital by early 2003. In the same period, its first Managing Director, Michael Hanlon was recruited. Later that year, a draft business plan was proposed and formal application to the FSA was submitted.
By August 2004, the FSA granted authorisation of the bank, and subsequently led to the Islamic Bank of Britain available to the public.
Like all financial institutions, IBB was adversely affected firstly by the global financial crisis of 2007-2008 and subsequently by on-going weak macroeconomic conditions. Despite, this IBB continued to grow and in 2012 attained the highest level of retail asset finance and deposit balances in its history.
The acquisition of Islamic Bank of Britain by Masraf Al Rayan
On 16 January 2014 IBB confirmed that its new parent company was Masraf Al Rayan, the fifth largest Islamic bank in the world and the second largest bank in Qatar. In September 2014, IBB confirmed that, subject to formal shareholder approval, it will change its name to Al Rayan Bank in December 2014.
In December 2014, Islamic Bank of Britain officially changed its name to Al Rayan Bank PLC, to reflect its status as part of the Masraf Al Rayan (MAR) group of companies.
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