Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, what plans he has to extend Sharia financing within the UK banking system.

There are currently no plans to extend shari'ah compliant financing into the UK banking system, but the Government will continue to work with the financial services industry to broaden the range of shari'ah compliant products and services available in the UK, and encourage the industry to play its part. The Government welcomes, for example, the recent creation of an Islamic Account by Lloyds Bank. This account allows customers who cannot receive credit or debit interest due to their religious beliefs to hold a bank account in the UK and is available to all UK citizens regardless of background or faith.

Furthermore, The Bank of England has recently announced that it will be commencing work to assess the feasibility of establishing a shari'ah compliant facility next year, which the Government welcomes. Any such facility will help Islamic banks in the UK to better meet their obligations under the liquidity rules, bringing Islamic finance further into the mainstream.