Summit Bank, New Islamic Bank Gets CBN’s License

Summit Bank, a new Islamic bank has just received provisional licensing from the Central Bank of Nigeria (CBN), to operate non-interest banking, devoid of interest rates.

Summit Bank brings to six the total number of full-fledged Islamic banks in the country.

The full-fledged Islamic banks, duly licensed by the CBN are: Jaiz Bank Plc; Taj Bank Limited; Lotus Bank Limited; Sun Trust Bank Limited; Alternative Bank Plc and Summit Bank Limited.

Non-interest banking system is governed by a resilient code of ethics in all its practices and functions, and there are no interests.

It is the first, where a customer, whether an individual or business, is not just a customer but is a partner with the Bank or owner of goods and assets.

This means they share the risks as well as the profits of such a partnership and ownership. This unique arrangement is done under the principles of Shariah (Islamic Law) which always ensures complete transparency

Non-Interest Banking, emerged as a response to both religious and economic exigencies.

It is an alternative financial system, operating within a framework that adheres to the tenet-based principles of Shariah (Islamic Law), thereby introducing a fair system of social justice and equality, while fulfilling the financial needs of people and maintaining high standards of ethics, transparency and a sense of responsibility.