Jaiz Bank Plc, is a non interest bank in Nigeria. It is the first non-interest bank established in the country.

I’ve been hearing of interest-free accounts all over the place, and “luckily” financial institutions that allow this are now available in Nigeria.

How do such bank make profits when doing interest-free banking? Are there then any incentives for customers when they gain no interests on their savings and fixed deposits? Is there really any sense in interest-free banking?

Are there other ways bank make money apart from interest rates?

Your answers would be deeply appreciated.


Neteller here: www..com.ng

Wifey asked this same question when I explained Jaiz bank to her. I'm waiting for answers too.

They re money doublers..

So every money to take to the bank is doubled thus making profit..

The Bank makes profits in three different ways.

Firstly, is buying and selling; meaning it buy an asset and sell at a profit. Note that, Islamic Banks are the only institutions authorized to engage in trade.


Secondly, is through leasing. Under the leasing arrangement, the Bank can for instance, finance a factory’s need for equipment and machineries and then lease out same on rental basis.


Thirdly, is through partnership. Here, it can go into partnership with either an individual or corporate body on a joint venture which is based on a pre-agreed profit and loss sharing formula. Under this arrangement, both parties can jointly contribute capital to a business and then share profit or loss based on agreed ratios.



Source: http://jaizbankplc.com/faqs/