This study goes into the depth of a European bank which entirely practices interest-free banking for its saving and lending operations. The study shows that there are some similarities between JAK and Islamic banks but differences are many. One difference lies in the service offerings as JAK only deal with savings and lending and does not get involved in profit-loss sharing which is central to Islamic banking. Islamic banks can learn from JAK how to educate their customers so that business gets clear to them. By comparing with Islamic banking, the European bank management can have the idea how far they do Islamic banking and what is unique with their bank. The European bank management has to deal with new challenges how much they can grow of being a non-profit organization in the long run.
“Ethical finance” is a term used to describe finance that is put to good social and environmental use. Interest in it has risen since the 2008 global financial crisis, with Islamic finance and socially responsible investment funds becoming its two fastest areas of growth. The World Bank Treasury has brought the two together by helping the International Finance Facility for Immunization issue two Sukuks in less than a year.
IFFIm is an international organization that finances child immunization and strengthens health systems related to it in some of the poorest countries of the world through Gavi, the Vaccine Alliance. Backed by nine sovereign governments—the United Kingdom, France, Italy, Norway, Australia, Spain, the Netherlands, Sweden, and South Africa—the organization raises money in the international capital markets.
Dear Readers,
aside from Islamic banks there is another model in practice for more than 20 years avoiding the topic of interest. I usually cite it in my seminars to show that even interest free loans can exist along a banking model. Years ago, an in depht analysis was published online:
http://anielski.com/wp-content/documents/The%20JAK%20Bank%20Report.pdf
In the meantime interested groups can seek assistance to set it up by:
http://www.cajasweden.se/downloads/caja_folder_e-version.pdf
And also JAK offers courses and backgrounds for international interested groups from abroad in their first newsletter:
http://jak.aventus.nu/download/JAK_Int/JAK_International_Newsletter_1.pdf
Addendum: A master thesis about JAK Medlemsbank can be downloaded here:
http://www.jak.se/sites/default/files/folkbildning/dokument/MARK_BURTON_...
Enjoy reading and take it as a source of inspiration!
Best regards,
Michael Saleh Gassner