The Art of Islamic Banking and Finance: Tools and Techniques for Community-Based Banking

&Sex

&Alimony, child support, or separate maintenance income

&Child bearing

&National origin

&Race

&Color

&Religion

&Sexual orientation

Application Processing and Evaluation and Loan Application Second Review
Process A bank must not use any information it obtains to discriminate
on a prohibited basis. No loan application submitted to the bank will be
declined unless the decision to decline is supported by sufficient
documentation.

Credit Extension A bank must commit that it will not discriminate on a
prohibited basis in the extension or denial of credit.

Notification A bank is required to provide notices of action taken on loan
applications in accordance with the provisions of the ECOA and Federal
Reserve Board Regulation B, described above.

Record Retention A bank is required to maintain the following informa-
tion, as required by law:

&Application form

&Written or recorded information used in evaluating an application

&Written or recorded information regarding any action taken concern-

ing a new or existing extension of credit, including a copy of any state-

ment of specific reasons for adverse action

&Information obtained for purposes of government monitoring

&Any claim or accusation of alleged discrimination or other violation of

law submitted by an applicant or existing customer

Unless a shorter retention period is permitted by applicable law, the in-
formation listed above must be maintained for a minimum of 12 months
(non-consumer) or 25 months (consumer) after the date on which the bank
notifies an applicant of action taken on an application or of incompleteness
of an application.

Government Monitoring Program As required by applicable law, a bank is
required to request and maintain information from loan applicants on race,

The Conventional Riba-Based Banking System 171