(6 July 2022 – Australia) Islamic Bank Australia has been awarded a restricted banking licence from APRA to become a restricted authorised deposit taking institution (RADI).
The group becomes the first Islamic Bank in Australia, with all its banking products endorsed by prominent Shariah scholars. IBA is backed by thirteen founder shareholders and led by CEO Dean Gillespie and Chairman Anthony Wamsteker.
Islamic finance is based on a belief that money should not have any value itself, with transactions within an Islamic banking system needing to be compliant with the laws that form part of the Islamic tradition (Shariah). While Islamic Bank Australia is not yet open for business, the Restricted ADI enables it to build and test systems and then offer products to a small number of real customers.
IBA will launch business banking services after a full licence is received with its foremost focus on retail banking with Shariah compliant personal transaction accounts, savings products and mortgage lending. The group must release an income-generating asset product and a deposit product before it can secure a full licence under APRA’s new standards following the departure and/or acquisition of prominent Neobanks who also received RADIs in the last three years including 86 400, Volt and Xinja.
“With the number of Muslims in Australia growing by more than six percent every year, we’re excited to be bringing this new type of banking to the Australian community” IBA CEO Dean Gillespie stated.
“Islamic banks are incredibly popular worldwide because of the ethical way they interact with customers. It’s more like a partnership where both the bank and the customers share the benefits” Gillespie added.