Bank following Islamic principles opens in China

Beijing: A first-of-its-kind bank following Islamic principles was opened Thursday in Xining, capital of China's northwestern Qinghai province, to provide customised services to Muslims.

The Jianguo Road Branch of Xining Rural Commercial Bank began operation as Muslims celebrate Eid-ul Adha tomorrow.

Female bank staff wore long gowns and headscarves. Signs are written in both Chinese and Arabic languages, state-run Xinhua news agency reported today.

"Many Muslims in Qinghai study Arabic, and there are also a lot of Arab businessmen in the city. The Arabic translations are quite necessary," said Han Jun, head of the branch.

Before opening, the bank invited an imam from the city's Dongguan Mosque to offer supervision in terms of Islamic doctrines, standard of behaviour and the use of Arabic translations in their services.

"Ahong (imam) also checked the hygiene of the bank and provided suggestions in other areas," said Han.

Islam forbids lending out money at interest. The bank, taking that in consideration, offers small-sum loans to Muslim customers at only 15 per cent of average interest rate.

"The bank also provide guarantee and mortgage services for Mecca pilgrims," he added.

China has more than 20 million Muslims, who mainly live in the western provinces, including Qinghai, Gansu and Yunnan, as well as Xinjiang and Ningxia regions.

Qinghai has nearly one million Muslims, or one fifth of the province's total population. Han said the bank was the first-of-its-kind in Qinghai.