Are there any Islamic banks in USA?
Yes, there are Islamic banks in the United States. Islamic banks follow the principles of Islamic finance, which are based on the principles of the religion of Islam. These principles include the prohibition of interest, the promotion of financial inclusion, and the prohibition of investing in businesses that are considered harmful or unethical.
Below is a list of Islamic banks in the United State. These banks offer a range of financial products and services that are compliant with Islamic finance principles. Some of these banks are full-fledged Islamic banks that offer a complete range of banking services, while others may offer only a limited range of Islamic finance products and services.
List of Islamic banks in USA
- American Finance House – LARIBA
- University Islamic Financial Corporation (UIF Corporation)
- JPMorgan Islamic Finance
- Standard Chartered Islamic banking
- Devon Bank, Chicago
- Guidance Residential, in Reston, Virginia
1. American Finance House – LARIBA: it is a financial services company that offers Islamic finance products and services in the United States. LARIBA stands for “Leasing and Entrepreneurial Resource and Islamic Banking and Accounting.” The company was founded in 1987 and is headquartered in Pasadena, California. American Finance House – LARIBA offers a range of Islamic finance products, including home financing, business financing, and investment products. These products are designed to be compliant with Islamic finance principles, which include the prohibition of interest and the promotion of financial inclusion. The company’s mission is to promote the principles of Islamic finance in the United States and around the world.
2. University Islamic Financial Corporation (UIF Corporation): University Islamic Financial Corporation is a company that offers Islamic finance products and services to educational institutions in the United States. University Islamic Financial Corporation was founded in 1998 and is headquartered in Michigan. The company offers a range of Islamic finance products, including financing for building and construction projects, equipment leasing, and working capital financing. These products are designed to be compliant with Islamic finance principles, which include the prohibition of interest and the promotion of financial inclusion. University Islamic Financial Corporation’s mission is to help educational institutions access the financing they need to achieve their goals while adhering to Islamic finance principles.
3. JPMorgan Islamic Finance: JPMorgan Chase & Co. is a large financial services company that offers a range of Islamic finance products and services in the United States and other countries. JPMorgan’s Islamic finance products are offered through its Islamic finance unit, which is called JPMorgan Islamic Finance. JPMorgan Islamic Finance offers a range of Islamic finance products, including home financing, business financing, and investment products. These products are designed to be compliant with Islamic finance principles, which include the prohibition of interest and the promotion of financial inclusion. JPMorgan Islamic Finance also offers advisory and consulting services to help clients navigate the Islamic finance market. The company’s mission is to help clients access the financing they need while adhering to Islamic finance principles.
4. Standard Chartered Islamic banking: Standard Chartered is a large multinational bank that offers a range of Islamic finance products and services. The bank’s Islamic finance unit is called Standard Chartered Saadiq. The Standard Chartered Saadiq products and services are designed and structured by a team of qualified professionals at Standard Chartered Saadiq Berhad (Saadiq, which means “truthful”) to ensure that they are in accordance with Shariah rules governing Islamic Banking and Finance. Additionally, the Bank has an independent Shariah Advisory Committee composed of a group of professional managers who reputable Shariah scholars advise both locally and internationally to guarantee that all products are in compliance with the principles of Shariah.
In 1992, Standard Chartered became the first foreign bank in Malaysia to provide Islamic Banking services. They are committed to providing customers with top-notch Islamic solutions for all of their financial needs, and they have a presence in over 70 countries.
5. Devon Bank, Chicago: Devon Bank is a community bank that is based in Chicago, Illinois. The bank offers a range of banking services, including checking and savings accounts, home financing, business financing, and investment products. Devon Bank is a Chicago, Illinois-based community bank. A variety of banking services are provided by the bank, including checking and savings accounts, mortgages, business loans, and investment products.
There are many terms and financing amounts available for home financing. In numerous states, they currently provide Murabaha financing.
6. Guidance Residential, in Reston, Virginia: Guidance Residential is a non-bank financial services company that offers Islamic finance products, including home financing, in the United States. The company was founded in 2002 and is headquartered in Reston, Virginia. Guidance Residential’s home financing products are designed to be compliant with Islamic finance principles, which include the prohibition of interest and the promotion of financial inclusion. Instead of charging interest, the company uses a profit-and-loss sharing structure to finance home purchases. This means that the borrower and the lender share in the profits or losses of the financing arrangement. Guidance Residential’s mission is to make homeownership accessible and affordable for Muslims in the United States while adhering to Islamic finance principles.
The success of Islamic banks in USA
Islamic banks in the United States have seen a growth in popularity in recent years, although they still make up a small portion of the overall banking industry. One reason for their success is that they offer financial products and services that are compliant with Islamic law, which prohibits the charging of interest on loans. Instead, Islamic banks make money by sharing in the profits of the businesses they finance. This type of financing is known as profit-and-loss sharing.
Islamic banks in the United States have also been successful in attracting a diverse customer base, including not just Muslims but also non-Muslims who are attracted to the ethical principles that underpin Islamic finance.
Despite their growing popularity, Islamic banks in the United States face some challenges. One is the lack of a clear regulatory framework for Islamic finance at the federal level, which can make it difficult for these banks to operate. Another challenge is the limited number of Islamic finance products available in the US market. However, these challenges are being addressed by industry leaders and regulators, and it is likely that Islamic banks in the United States will continue to grow and thrive in the coming years.
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