Shari’a Compliant Lending – An Update

Notwithstanding The Recent Industry Buzz On The Potentials Of Islamic Financial Services In Canada, As Discussed In Our Spring 2008 Newsletter, There Appears To Have Been Little Meaningful Activity To Date. No Major Financial Institutions Are Currently Offering Such Products In A Meaningful Way.

As Previously Reported, Applications For Such Products Have Recently Been Made To OSFI, And
While Some Of The Applications Have Been Reported To Be Quite Far Advanced, Applications Appear To Be On Hold Pending The Response Of A Federal Multi-Agency Task Force Established In 2007 To Consider The Issues. Canadian Mortgage And Housing Corporation (CMHC) Recently Issued A Request For Proposal For A Research Report On The Subject.

Muslim Canadian Congress Has Called The Recent Shari’a Banking Impetus The "Biggest Con Job Ever."

The Request For Proposal Was Criticised By The Muslim Canadian Congress, Which Released A Letter Written To CMHC’s Chief Executive Officer, Karen Kinsley, Urging The Housing Authority To Abandon The $100,000 Study. For More Information On The Muslim Canadian Congress’ Position, Please See The Article In The Jan. 30/08 Toronto Star. Despite The Opposition, The Federal Housing Authority Indicated That It Will Be Going Forward With The Study. We Will Continue To Monitor The Situation.