"Unfortunately what is happening is that Islamic finance in some ways is moving more and more closely to the conventional finance," says Prof Habib Ahmed, a world authority on Islamic finance.
"If you look at the development in the past few years, Islamic finance appears to be mimicking most of the products of conventional finance."
There has never been a better time to champion an economic model which is different to the one laying in shreds on Wall Street, says Prof Ahmed. But he believes that the Islamic concept is being diluted.
"As people after this crisis are looking for solutions...the Islamic finance industry is moving towards that very system," he says.
"I think it is time for Islamic finance to pause and think of the direction it is taking"
Dear people, as i have read your messages below, its clear and unfortunate that even though which such high literacy percentage in our country, people dont have any shame in letting everyone know their ignorance on Islam and Islamic Banking.
Re: islamic banking
by Desert Fox on Sep 01, 2009 10:59 PM
You should also open a fixed deposit there on 0% interest. If you cannot, then you are a hypocrite.
BTW, how will these banks survive ? How did RBI allow such banks in India.
Re: Re: islamic banking
by international on Sep 01, 2009 11:16 PM
what u mean such bank in india...why not??? it will be a normal bank without interest whether deposit or loan but when the bank makes profit from trade and inevstemenst the mangement charges gets covered
Re: Re: Re: islamic banking
by Desert Fox on Sep 01, 2009 11:19 PM
I don't think they will give interest free loan to any Tom, Dick and Harry. I am sure they will take some security money or property or some kind of charge upfront to become member of a bank.
This is because they have to invest money. Who will get them money ? Then the profit will be shared. If they make loss, that loss willbe shared.
Beware, they will always cook data and show losses and grab money from their clients.
Re: Re: Re: Re: islamic banking
by international on Sep 01, 2009 11:29 PM
as if islamic bank is coming for the first time in this wordl...which word are u in
Re: Re: islamic banking
by Muhammad Ibrahim on Sep 06, 2009 10:23 AM
i agree it shld be avail for all indians. but i do not agree with some of people who argue against sharia banking. hey if u r interested just appreciate otherwie get lost!!! our country is not your own or my own. ITS SIMPLY OURS. STOP CRITICISING WITH IN OURSELVES. TRY TO LIVE OUR OWN LIFE RATHER THAN THINKING OF /TERRORIST or WHO ARE NOT EVEN KNOWN TO US IN OUR DAILY LIFE. JUST GROW UP MAN!!!
Interest free bank is a boon to the masses. Take the case of a home loan at present. 20 lakhs for 20 years, by 20 years might have paid over 50 lakhs.Is it reasonable? Similarly giving interest free loans to poors and needy is a wrong concept? Probably in India it may need to call Interest free bank and not Islamic bank. I do not think anybody will disagree with it.Or whatever appropriate name.
Re: Interest Free Bank
by Satish Shankarnarayan on Sep 01, 2009 10:59 PM
Hello Rasheed,
I am not very sure about the Islamic banking but i think taking a loan itself is against Shari'ah. So you cannot take a car loan or home loan i guess - Correct me if i am wrong. The banks in this case are more into profit sharing in wealth creating businesses.
Re: islamic banking
by Rasheed A on Sep 01, 2009 07:39 PM
It is not as simple. It is running on the basis of social responsibility. You may need to prove or you may need to give guarantee like gold etc...
Re: Re: islamic banking
by Indian on Sep 01, 2009 07:43 PM
so what..if a gurantee is required...as long as my inetntions are good and iam ready to pay back...i have no problem in giving a gurantee
Re: Re: Re: islamic banking
by Indian on Sep 01, 2009 07:45 PM
it will avoid all sorts of unwanted interests that are charged so heftly by so many bansk
Re: Re: islamic banking
by sanjeev saxena on Sep 02, 2009 08:21 PM
suppose i need loan for 20 lakh and islamic bank asking me to show my asset more than 20 lakh then what is point i should go for loan. i have money then why i need to take loan. i think islamic bank is not truely for middle class or lower class. it will server very few people.
Re: Is it secular move?
by Rasheed A on Sep 01, 2009 07:41 PM
What is unsecular about it? The bank does not sell/buy rumours but real entity. There won't be recession as we have seen now if this method is followed..
Re: Re: Is it secular move?
by sanjeev saxena on Sep 02, 2009 08:25 PM
You know one of the funny part, Citi Bank is owned by one of princes of Suadi Arabia and you know very well how bad was citi investing banking was. Real Bank are not NGO , they have to make profit and give profit to customers
Re: Re: Is it secular move?
by JGN on Sep 01, 2009 08:57 PM
Of course there is no recession in Pakistan and other musliim majority countries now!! The poor people are not able to even afford eggs in Saudi. So much for yourpisslamic banking!!
