Council leader Mike Whitby has thrown his weight behind plans to promote Islamic finance in the city to give more economic opportunities to budding entrepreneurs.
He met Mohsen Moustafa, the chairman of the Birmingham-based Islamic Bank of Britain, to discuss its work with entrepreneurs in the Midlands, and across the UK.
And he said he supported the bank's mission to promote "ethical" enterprise.
Coun Whitby (Con Harborne) said: "The real strength and opportunity for this city lies in its diversity and the scope for energy and enterprise that this creates for us. It is a feature where Birmingham leads the world. The particular ethical base of IBB is another example of this and I know that it will continue to thrive here.
"I want us to work together to ensure that the bank's presence here translates into business growth among communities that may feel excluded from other financial avenues and address directly problems of social exclusion and other disadvantage."
The IBB is the first Islamic finance institution in the UK to be authorised and regulated by the FSA to run as a retail bank. It operates financial services that are compliant with Sharia law, which forbids charging interest.
The IBB was also the first to introduce Sharia-compliant business banking to the UK, and now offers a wide range of institutional and business banking products and services, including commercial property finance.
Commercial director Sultan Choudhury said: "IBB is committed to providing entrepreneurs with the opportunity to grow their business without compromising their ethical principles."