Islamic banking to increase in Australia | Birmingham Star

Islamic banking to increase in Australia

Birmingham Star Sunday 21st February, 2010

The Australian government has expressed an interest in creating a finance hub for the nearly one billion Muslims in Asia-Pacific region.

Government ministers are known to want to expand Islamic banking to help Australia become a dominant player in regional financing.

Banking systems that comply with Islamic beliefs are becoming a worldwide industry, with banks in the Asia Pacific region already common in Indonesia and Malaysia.

With Australia wanting to bolster the Islamic market, a report has been released that details how Australia can position itself to become a financial services hub, particularly for Islamic finance.

Islamic finance differs from conventional Western banking by focusing on profit-sharing.

Wealth is generated through trade and investment in assets, such as property or commodities.

Liquor and gambling investments are banned and charging interest is forbidden.

The report says Australia's 365,000 Muslims are likely to use Islamic banking services.