Barclays to offer interest free loans.

When Barclays Bank turned down the offer of a government bail out it ensured that there would be no threat to the bank's independence or to senior management's richly deserved bonuses. It did not mean of course that Barclays was not as deeply in the shit as any other bank, just that they would have to look elsewhere for a financial leg up. Enter the Royal Families of Qatar and Abu Dhabi who are now set to bail out the High Street bank to the tune of 7 billion quid in return for 32% stake in the operation. So far so good. Barclays are saved and members of the board will not be reduced to doing the Christmas shopping at Woolies. 

But hang about. I thought that usury was forbidden  under sharia law and that Islamic banking involved no interest charges. Does this mean that Barclays will be bound to offer interest free loans if the Middle Eastern investors ever end up with a controlling stake? 

Islamic banking seems like a pretty good idea as it goes and more along the lines of a mutual society than the city spiv flogging mortgages of the back of a lorry that we have grown used to. However, I'm not an expert on banking or sharia law and if you really want to find out about Barclays new line in interest free loans I suggest that you trot down to your local branch and ask at the desk.