A de novo bank planned in Minneapolis is seeking to become a minority financial institution that would offer Shariah-compliant products and services.
Organizers recently submitted an application with the Federal Deposit Insurance Corp. for AarBank. More than 51% of the voting stock would be owned by minority individuals, according to the application.
“The organizers aim to achieve financial success in serving the broad needs of the community and the people who would be their customers that are currently being underserved due to the lack of financial services products that conform to their religious beliefs,” the application said.
“We are not aware of any U.S.-based banks that currently offer a full suite of products that cater to observers of faiths that have restrictions or limitations on the use of interest,” the organizers added. “We believe AarBank will be the first, full -service, faith -based community bank in the United States.”
The bank said it also plans to market its products to secular retain and commercial clients. Those products would include installment credit for mortgages and redeemable leases for home equity loans and consumer loans.
On the commercial side, the bank would offer installment credit or redeemable lease products for commercial real estate, installment credit for multifamily lending and redeemable leases for commercial-and-industrial lines.
AarBank would also promote profit-sharing checking, savings and money market accounts, along with CDs.
The bank will also allow for online account openings.
Organizers plan to raise at least $25 million of initial capital.
Osman Gabeire is expected to serve as AarBank’s president and CEO. He worked at Silvergate Bank for more than two years, according to his LinkedIn profile.
Keith Mestrich, former CEO of Amalgamated Financial in New York, would serve as the bank’s chairman.