National Australia Bank (NAB) is the only bank in this 2026 comparison. It has a current Islamic finance service for Australian business customers and appears on APRA’s register of authorised deposit-taking institutions.
NAB’s service is for business finance of at least $3 million. It does not provide a Sharia-compliant personal transaction account or a standard residential home loan. Australian customers who need those products will have to compare specialist non-bank finance providers as a separate category.
Australia has no dedicated Islamic bank on APRA’s current register. Islamic Bank Australia gave up its restricted banking licence in March 2024 before it launched a product or accepted a deposit.
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What Islamic banking means in Australia
Islamic finance follows Sharia rules that prohibit riba, commonly understood as interest. A finance agreement may instead use a lease, an agency arrangement or a trade-based structure. The contract sets the customer’s payments and the bank’s return without using a conventional interest-bearing loan.
Sharia screening also excludes finance for activities such as gambling, alcohol and weapons. NAB says its Islamic finance service has been reviewed by advisers connected with the Accounting and Auditing Organization for Islamic Financial Institutions and the Islamic Financial Services Board.
The legal status of the provider still matters. APRA says a business needs an authorised deposit-taking institution licence to conduct banking business in Australia. A finance company that does not take deposits may provide Sharia-compliant finance without being a bank.
Top Islamic bank in Australia
1. National Australia Bank (NAB)
NAB ranks first because it is a current APRA-authorised bank with a dedicated Islamic finance service. NAB says it is the only major Australian bank with this type of business finance.
The service starts at $3 million. Eligible purposes include commercial property or land purchase, construction, business acquisition and equipment or livestock. It can also support a business that does not have property to provide as security. A broker handling smaller business loans will need another option.
NAB describes the service as a compliant alternative with comparable pricing. The public page does not publish a rate or promise approval. Brokers should request the proposed structure, total payments and security terms for the specific transaction.
NAB also says 90 accredited bankers across Australia can write Islamic finance transactions. That gives a broker a direct customer service path for a qualifying business client, but the specialist banker still needs to confirm whether the purpose and amount fit the service.
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Who should consider NAB’s Islamic finance service?
NAB is a relevant choice for an Australian business seeking at least $3 million for an eligible commercial purpose. The service can suit property development, a business purchase or equipment finance when the customer wants a structure reviewed against Islamic finance standards.
It is not a direct substitute for personal banking. A customer seeking an everyday account, a savings account or residential finance needs a different search. Brokers should state that limit at the start so the customer does not mistake NAB’s commercial service for a complete Islamic retail bank.
Why the list has one bank
APRA’s register is the starting point for checking whether an organisation is a bank. The register was updated on 10 August 2026 and lists NAB as an Australian-owned authorised deposit-taking institution. It lists no restricted authorised deposit-taking institutions.
Islamic Bank Australia once held a restricted licence. APRA revoked that licence at the company’s request on 7 March 2024. APRA recorded that the company had launched no products, had no customers and held zero deposits when the licence ended.
Specialist providers can still arrange Islamic home finance, investments or superannuation. Compare those services as finance or investment products supplied outside an authorised bank. Sharia compliance alone does not confer bank status.
How brokers should compare an Islamic finance proposal
Start with the customer’s purpose and required amount. NAB’s public minimum removes many small-business and residential enquiries from the comparison before product details are discussed.
Ask for the legal name of the contracting entity and check it against APRA’s register. If the provider is not an authorised deposit-taking institution, describe it as a finance or investment provider rather than a bank.
Request the complete payment schedule and an explanation of the structure. Compare the total amount payable, security, early payout terms and the customer’s responsibilities during the agreement. A familiar monthly figure does not make the legal arrangement identical to a conventional loan.
Check the Sharia review for the specific product. A general statement about Islamic finance does not establish that every service from the same organisation has received the same review.
Keep the comparison within your licence and competence. Refer legal, tax or religious questions to a qualified adviser. Clear role boundaries help build trust when the contract is unfamiliar.
What to do next
For a qualifying business enquiry, contact NAB’s Islamic finance team and request written terms for the proposed transaction. Confirm the current minimum, eligible purpose and available structure before presenting the option to the customer.
For personal banking, residential finance, superannuation or investments, run a separate comparison of current providers. Label each provider by its legal category and verify its licence, product documents and Sharia review before making a recommendation.
