Lloyds TSB has launched an account designed to ensure that the UK's two million Muslims and 100,000 Muslim firms can make and receive international payments without compromising their faith.

The bank has consolidated its position as a leading provider of Islamic financial services by becoming the first mainstream western bank to offer an account that allows banks to move money around the world on behalf of their clients, in keeping with Shariah law.

The Islamic Nostro Account is a Shariah-compliant version of the account used by all banks to distribute payments to customers across the world.

Diana Brightmore-Armour, chief executive corporate banking and co-head corporate markets, said: "We've designed this account to help the growing number of Islamic banks across the world, which deal with our customers' transactions.

"We're providing the missing link in the chain, so now any person or business receiving payments from abroad into their own Islamic account knows the money will be dealt with according to Islamic law, from start to finish."

The account adds to a suite of Islamic products Lloyds TSB has launched recently.