The headline in The Times of London a few days ago could not have been more explicit: “Shariah-compliant banking products a ‘huge flop’ in Britain.” It is a pity that the writer was not more discerning or informed about Islamic banking in Britain.
The two industry insiders on whose views the story is based are neither experts in Islamic finance nor bankers. ‘Baron’ Junaid Bhatti was part of the team that established Islamic Bank of Britain (IBB), which erroneously claims that it is the first Shariah-compliant bank to be approved by the UK.
The other individual quoted was Mohammed Qayyum, Director General of the Institute of Islamic Banking & Insurance, an institution which has spectacularly failed to make any impact since its establishment because of serious organizational and corporate governance deficiencies.
The UK, as the Bank of England and the erstwhile Financial Services Authority (FSA) will confirm, does not authorize Shariah-compliant or Islamic banks, for neither the words ‘Shariah-compliant’ nor ‘Islamic’ appear in the UK Banking Act. In fact they could only appear through the passing of primary legislation.
By MUSHTAK PARKER | ARAB NEWS
The Islamic finance industry has often battled with the question: How Islamic is Islamic banking? The question's pertinence was raised by Sheikh Muhammad Taqi Usmani who said that 85% of Sukuk, or Islamic bonds, were un-Islamic. 
