Islamic Bank Australia (IBA), the country’s first-ever Islamic bank, has received a Restricted Authorized Depository Institution (ADI) license from the Australian Prudential Regulation Authority (APRA) and plans to begin beta testing in 2023.

Australia’s first Islamic bank receives restricted ADI license

Founded in 2020 and based in Sydney, IBA operates as a brand under the IBA Group company. It aims to bring Sharia-compliant banking services to Australia.

According to the bank, the restricted ADI period will last two years, during which time it plans to develop its systems and test and test its products with a number of customers in 2023.

“After a successful limited launch, we are aiming to obtain APRA approval for the launch to the general public,” IBA said. “It won’t be until 2023 or 2024.”

The IBA group was founded by 13 Muslims, who are also shareholders with the company Abreco Group, based in the United Arab Emirates.

Although the bank is not currently open for business, it plans to offer products such as an “everyday” account, term deposits and home financing.

The company says its products will be vetted by internationally renowned Islamic scholars to ensure they are Sharia compliant.