Kuveyt Turk Bank and Prospective Homeowner

Islamic bank: Instead, the Turkish-owned bank will purchase a piece of property, for example, and sell it to a prospective homeowner at a higher price - which would technically not be interest, according to Deutsche Welle. The sum can also be paid off in installments. But tacking a fee onto the funds it lends out is not how the first Islamic bank to operate in Germany, the Kuveyt Turk Bank, which opened in Frankfurt on Monday, will be making its money. Some analysts have noted little difference between this practice and traditional Western loan operations, but Ugurlu Soylu, general manager at KT Bank, says it boosts the real economy. Individual customers are then given a share of the average yields from the bank credit operations. Lending is conducted, like at traditional banks, by tapping savers' deposits. (news.financializer.com). As reported in the news.