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General Questions

What is Islamic banking?

Islamic banking means banking and financial business governed by the principles of the Islamic faith with its ethical canon of values and social responsibility obligations. Please find detailed information here.

Which lines of business are taboo for investing?

Due to social and ethical exclusion criteria in Islamic banking, the KT Bank AG only invests in Islam-compliant lines of business. Investing in businesses that provide goods or services considered contrary to Islamic principles, like those involving alcohol, pork, gambling, arms, and tobacco, among others, is prohibited as well as highly speculative and untransparent transactions and such involving gambling or any games of chance.

Do you pay interest?

No, we do not. We do not pay interest on financial investments nor engage in interest-bearing moneylending.

How does an interest-free bank generate profits?

On one hand, we are operating as a trader, buying commodities for our clients and reselling them with a profit markup. In this way, we avoid interest. On the other hand, we are acting as an entrepreneur by participating in projects and subsequently sharing in their success.

Is charging a profit markup not the same as charging interest?

No, it is not. Islamic banking is based on the general prohibition of interest (riba) which forbids interest-bearing moneylending. We are not lending money conventionally, but financing real goods. All our transactions are asset-backed. We are buying commodities for our clients and resell them with a profit markup. The clients pay the total amount back to us in manageable instalments.

Are my deposits safe?

We are a member of the “Entschädigungseinrichtung deutscher Banken GmbH” (EdB), which secures our clients’ deposits up to €100,000 (for married couples up to €200,000).

Where are your branches located?

We advise you in person at our branches in Mannheim, Frankfurt, Berlin and Cologne. Please find the addresses here. In future, we plan further branches in Munich and in the greater area of Düsseldorf.