10 August 2004
Edwardes interviewed by Pierre Pratabuy (Agence France-Presse, London Office)
1°) The FSA approved
yesterday the first Britain's pure Islamic bank. Do you think it's an
important step and if yes, why ?
"The retail Islamic banking market in the European Union of about 10
million is too substantial a market to ignore." says Warren Edwardes, CEO
of financial product innovation and risk consultancy Delphi Risk
Management. "Only a few years ago several pure internet banks were
launched. Established banks saw this threat and established internet
operations as just another delivery channel. The approval of The Islamic
Bank of Britain is sure to galvanise conventional banks in the UK, France,
Germany and the Netherlands to establish their own retail Islamic Banking
2°) What is the importance of Islamic banking in UK ? What are the most
active funds ?
"To date there has been minimal supply of Islamic Banking products on a
retail level and the products offered have been uncompetitive with
conventional alternatives and other than HSBC's initiative from less well
known institutions." Edwardes feels that customers are risk-averse and
whilst keen to transact Islamically they will be more likely to transact
with well-established brand name banks than start-ups.
3°) What interest would have non Muslim customers to use the new bank's
In Malaysia a large proportion of Islamic Bank customers are Chinese
Christians and Buddhists. They do so on ethical grounds and simply because
they like the products offered.
Warren Edwardes is CEO of Delphi
Risk Management, the London-based financial product creativity,
communication and control consultancy.
Warren was previously on the board
of Charterhouse Bank and has worked in the treasury divisions
of Barclays Bank, British Gas and Midland Bank. He first researched
into what were later to be called "derivatives" in 1975
and was part of the team that executed one of the world's first
currency swaps in 1981. Since then he has devised and transacted
numerous structures that form part of the history of derivatives.
Warren can be contacted via
Warren Edwardes <note spelling of edwardes> is author of best seller "Key
financial instruments: understanding and innovating in the world of
derivatives" which includes an appendix on Islamic Banking. see
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