The Canadian Office of the Superintendent of Financial Institutions is considering two proposals to open sharia-compliant banks. Such institutions would neither give nor charge interest and would not engage in speculative transactions. As well, they would not be involved in transactions having to do with pork products, alcohol, pornography or gambling. The Office of the Superintended is aware of another four interested parties as well.

Regulators studying the proposals have raised concerns about several issues. For example, can directors of such a bank really direct, or are they controlled by external religious scholars? Problems have also been identified around ability to audit and monitor such banks and about possible liquidity problems. Rather than giving a loan, for example, the bank becomes part owner of an undertaking, taking a profit when their interest in the undertaking is sold back. Hence, possible liquidity problems might arise.

In spite of the problems posed by these proposed ventures, there is considerable interest on the part of banking officials, as Islamic financial institutions may have the potential to provide an increased participation in the financial sector, though the extent of the demand in Canada is not clear.

Great Britain is trying to take the lead in becoming the world center for Islamic finance.