Chaabi Bank, a subsidiary of the People’s Bank of Morocco, announced Monday the launch of the first current account in France with the principles of sharia, Islamic law, and plans to offer at the end of a mortgage meeting the same principles.
Specifically, the bank will not pay interest on deposits, which is the case in most French banks. It also separates these deposits from the remaining funds from the bank to only use it in products and funding consistent with the principles of Islamic finance.
The hotel will submit, in addition, to controls and audits carried out by “an independent committee of Muslim scholars” to ensure compliance with Islamic current account.
Chaabi Bank has set a goal to convert 10% of its 300,000 clients French residents, many of Moroccan origin, this new account, but also covers other customers institutions.
The new accounts have already been made Friday by individuals who were not clients of Bank Chaabi far, said Amine Alami, director of development of the institution, stating that the offer only been available since Thursday.
The prices are more or less in the market average, with an annual fee of 78 euros with all basic services related to a current account and a Visa International.
“We did everything to be as competitive as possible,” said Alami. Expressions of interest and the first openings are mainly customers with higher incomes than average, he said, using the term “AB +" (high socio-professional category).
Chaabi Bank has 17 branches in France, including 7 in Paris, and soon plans to open three new ones. In addition to the current account, Chaabi will launch later this year offering a mortgage in the short term (4 or 5 years) committed to the principles of sharia, before offering the second half of 2012, a longer maturity loan.