Allegations that the Eskan (Housing) Bank was charging interest on loans have been denied by Bahrain’s Housing Minister Bassem Al Hamer.

Parliament second vice-chairman MP Abdulhaleem Murad had claimed the bank was charging interest, which is forbidden in Islamic finance.

However, Al Hamer told the parliament in writing yesterday that an Islamic commission established at Eskan Bank monitored all facilities provided to the public.

"We have a three-member legal commission, led by well-known scholars, to check on facilities besides all bank deals," said Al Hamer in a letter.

"All of the commission's recommendations are compulsory to the bank's management and administration.

"The Central Bank of Bahrain obliges any establishment that adopts the Islamic banking system to follow Islamic regulations and we in the bank have an annual revision that sees decisions matched with recommendations.

"Our accounts are audited by a 15-year specialist who has been appointed by the commission and all contracts are referred to the Supreme Islamic Council for validation."

Al Hamer, who was supposed to attend parliament's weekly session yesterday to answer MPs' questions, was absent due to illness. - TradeArabia News Service