Islamic loans turn profit for banks in USA

By Paul Wiseman, USA TODAY A customer showed up at little Devon Bank on Chicago’s North Side, asking for a loan to open a neighborhood shop. But there was a hitch, the would-be borrower explained: “We can’t pay any interest. Can you help?” (Interest is charges, but restructed, so as to be “hidden” the bank makes money on this transaction-this is a ruse”) comments by allyson rowen taylorAt the time, seven years ago, the answer was: “Nope,” recalls David Loundy, Devon’s vice president and legal counsel.

That was then. Since fielding that first request, Devon Bank has transformed itself into a specialist in the kind of no-interest Islamic financing the customer was seeking. Islamic financing now accounts for more than 75% of the bank’s mortgage portfolio, and Devon has made mortgages compliant with Islam’s sharia law in 36 U.S. (and just WHAT and HOW do they define Islam’s Sharia Laws?)

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