Islamic banking 'has a lower risk profile than Western institutions'...

A leading finance firm has claimed that an increasing number of people will invest in Islamic banking due to the current financial turmoil.BDO Stoy Hayward claims that Islamic banks are one of the "few financial institutions" which may still have "sums of money vailable".

Accountancy Magazine reports this is in direct opposition to Western banks, which will reduce their lending policies due to the economic climate which exists worldwide.In the UK, 20 major global banks currently provide Islamic financial services.Dan Taylor, head of banking at BDO, told the website that Islamic financial institutions have a "naturally lower" risk profile."

This presents a more solid option for both retail and institutional investors and suggests that dealings with Islamic financial institutions will grow dramatically as people switch to more secure products in the environment," he added.Gordon Brown has called for the introduction of new international accounting standards to end the "age of irresponsibility".