Islamic banking least affected by the global financial meltdown

Feelinglost

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"The rich ruleth over the poor, and the borrower is servant to the lender" -- Proverbs 22:7

The rich rules over the poor -- an ages long fact. The borrower is servant to the lender -- and what is the method used by the lender: the insidious system of usury.

"For the love of money is the root of all evil" -- II Timothy 6:10

"The most sinister and anti-social feature about bank-deposit money is that it has no existence. The banks owe the public for a total amount of money which does not exist. In buying and selling, implemented by cheque transactions, there is a mere change in the party to the whom the money is owed by the banks. As the one depositor's account is debited, the other is credited and the banks can go on owing for it all the time.

"The whole profit of the issuance of money has provided the capital of the great banking business as it exists today. Starting with nothing whatever of their own, they have got the whole world into their debt irredeemably, by a trick.

"This money comes into existence every time the banks 'lend' and disappears every time the debt is repaid to them. So that if industry tries to repay, the money of the nation disappears. This is what makes prosperity so 'dangerous' as it destroys money just when it is most needed and precipitates a slump.

"There is nothing left now for us but to get ever deeper and deeper into debt to the banking system in order to provide the increasing amounts of money the nation requires for its expansion and growth. An honest money system is the only alternative." -- Frederick Soddy, M.A., F.R.S., Nobel Prize Winner, 1921.

Below is an article I came across just few moments ago. Going forward (god I can't believe I just said that). Can we learn anything form the Islamic banking system.


A. Mannan, the CEO, Dubai Islamic Bank Pakistan feels that one of the strong points behind the success of Islamic banking is that all products of the Islamic banking are asset based unlike conventional banking where papers and securitization of the assets are in vogue. We should not look at Islamic banking in isolation as the Islamic banking is not an exception to the global recession. However as compared to the conventional financial regime, the Islamic financing is relatively safer due to its focus of prudence as well as quality of the assets.

It was a pleasant surprise to see a young CEO speaking on complex financial issues with a great amount of confidence and maturity while pleading the Ideology of Islamic banking and its benefits both for the customers and the financial system reflected in what he referred the tremendous response of the market.

Mannan is a dynamic professional who has been associated with leading banks in local and global markets. He was appointed CEO of Dubai Islamic Bank Pakistan Ltd. (DIBPL) in 2007 where he successfully managed to establish DIBPL as a world class Islamic bank excelling in Consumer, Corporate and Investment banking.

He said with a great sense of satisfaction while many banks had shelved heir consumer financing products in the face of economic slowdown and due to shockwaves of the world financial meltdown particularly the car and home financing, Dubai Islamic Bank continued to serve the people with these products and with the blessings of Almighty Allah these two products did not suffer from major defaults or non performing loans.

It may be mentioned that prior to joining DIBPL, Mannan was Deputy CEO of UBL, one of Pakistan's largest banks. He was instrumental in turning around UBL and launching the consumer banking business from the scratch. Before UBL, Mannan was associated with Citibank where he was heading the Cross Sell business in USA and in Pakistan he was part of the pioneering team which set up the consumer banking business.

He said that one of the major reasons for stability in the Islamic banking is that unlike conventional financial system it does not create value without assets which protect the Islamic system from any major loss. He referred the global financial meltdown which was stemmed from the sub-prime or mortgage system in the United States or the European countries where the value of the mortgage was created with backing of the assets.


ISLAMIC BANKING LEAST AFFECTED BY THE GLOBAL FINANCIAL MELTDOWN | editors-pick | weekly-updates
 


GridLock

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goodwill hunting

I was just reading the rules of islamic banking and i would be curious to give it a go being honest,there is way more you can do with islamic banking and they still get a good deal out of your money,so its not breaking any law.
OW I LOVE THE GOODWILL BASIS!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
 

GridLock

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In fairness i have looked into it and they have in some ways not all,a better system,it seems to give more assurances, ie someone buying your home(scary) but it is a situation where these institutions are less likely to take risks,if you take out a loan for up to half of the value of lets say a property,and they could then sell the share to you of lets say 80 % and you have paid the 20 %.You can opt for lets say purchasing at a sale price,to avoid interest.They rely less on inflated interests,than banks we are more used to.Although a catch would be,they could just take your home,they have lent you without any negotiations,if you could not pay up on although what you agreed on in the first place,they kick you out of their home!same could be said in certain instances with loans on banks that we are more familiar with..
Theres a lot of buying and negotiating on both parties,which ensures a certain tangelability,so the money is less likely to just dissapear,Islam has a totally different take on financing.
Why is Riba Banned - Islamic Mortgage Help
 
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i watched a feature on islamic banks on euronews about a year ago and was amazed to see that they charge ZERO per cent interest on loans as to do so is unislamic, despite this they are among the healthiest banks in the world. the west has done everything in its power to keep them out, SCUMBAGS.
 

GridLock

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I would be more likely to bank islamic,why did they freeze them out,are they afraid of healthy competition all they have to do is buy anglo at a knock down price and their in the game,im sure there are plenty of young irish in the 00's,and some non native irish who will simply invest!
 


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