Those
who devour usury will not stand except as stand one whom the Evil one by his
touch Hath driven to madness. That is because they say: "Trade is like
usury," but Allah hath permitted trade and forbidden usury. Those who
after receiving direction from their Lord, desist, shall be pardoned for the
past; their case is for Allah (to judge); but those who repeat (The offence)
are companions of the Fire: They will abide therein (for ever).
(2:275)Al Baqarah)
________________________________________________
The
systemic failure of the current banking model has generated much more official
interest in Islamic finance. Shariah-compliant finance is based on financing
secured against underlying tangible assets and involves risk-sharing between
the parties in the pursuit of genuine commercial activities, rather than
profiteering from paper instruments whose trail often led back to highly
leveraged low-quality debt (better known now as toxic debt). There was a
widespread view among those attending (including non-Muslims) that Islamic
finance could provide one possible way out of the current malaise and become an
important foundation in a new, more stable world economic order.
One
official pointed out that it is not the labeling of products as
“Islamic” that is the solution, as it is perfectly possible for a
shariah-compliant bank to create sophisticated financial products that end up
mirroring the conventional system. What is needed is ethical standards for the
financial system based on transparent risk assessments and controlled debt
levels. Whether such a model of greater fairness and integrity should
be necessarily labelled with the exclusive term “Islamic” is a separate debate.
Gordon Brown yesterday, in his speech to Congress, spoke in similar terms when
he said that “markets should be free but never values-free, that the risks
people take should never be separated from the responsibilities they meet”.
Non-Muslims
now make up half of the OCBC Al-Amin Bank’s Islamic banking customers, says its
chief executive.
ISLAMIC banking is gaining ground with non-Muslims worldwide
due to its strict lending principles, Singapore’s third-largest lender OCBC
said today, reflecting industry efforts to transcend religious beliefs to gain
market share.
Syariah finance is a blend of Islamic economics and modern lending principles and its products can be sold to Muslims and non-Muslims.
While it was previously a small market catering to Muslims who wanted to avoid interest-based conventional banking, Islamic finance has become popular in recent years due to cash-rich Gulf Muslim investors and rising demand for ethical investing.
Non-Muslim investors have also been looking for less risky alternatives since the onset of the global credit crisis over a year ago cast doubt on many Western risk management practices.
Syariah finance is a blend of Islamic economics and modern lending principles and its products can be sold to Muslims and non-Muslims.
While it was previously a small market catering to Muslims who wanted to avoid interest-based conventional banking, Islamic finance has become popular in recent years due to cash-rich Gulf Muslim investors and rising demand for ethical investing.
Non-Muslim investors have also been looking for less risky alternatives since the onset of the global credit crisis over a year ago cast doubt on many Western risk management practices.
But the Islamic finance sector is still relatively small and
the industry wants to grow its market share to become a global alternative to
conventional banking.
Many banks including OCBC have set up Islamic banking businesses to tap opportunities in the US$1 trillion industry. OCBC’s Malaysian unit launched its Islamic banking subsidiary, OCBC Al-Amin, last month.
“Islamic banking is getting a firmer foothold in the market right now and it has attracted not just Muslims but also non-Muslims not just in Malaysia but in the other parts of the world as well,” OCBC Al-Amin Bank chief executive Syed Abdull Aziz Syed Kechik told reporters.
“(In) Islamic banking, there is a lot of other governance to be put in place to enhance the confidence and enhance the risk management through the syariah governance and framework.”
Many banks including OCBC have set up Islamic banking businesses to tap opportunities in the US$1 trillion industry. OCBC’s Malaysian unit launched its Islamic banking subsidiary, OCBC Al-Amin, last month.
“Islamic banking is getting a firmer foothold in the market right now and it has attracted not just Muslims but also non-Muslims not just in Malaysia but in the other parts of the world as well,” OCBC Al-Amin Bank chief executive Syed Abdull Aziz Syed Kechik told reporters.
“(In) Islamic banking, there is a lot of other governance to be put in place to enhance the confidence and enhance the risk management through the syariah governance and framework.”
The UK now has five fully ‘sharia-compliant’ banks – providing products
which prohibit interest payments and investment in alcohol or gambling firms in
accordance with Islamic sharia law – while another 17 leading institutions
including Barclays, RBS and Lloyds Banking Group have set up special branches
or subsidiary firms for Muslim clients.
The $18billion (£12bn) in assets of Britain’s Islamic banks are said to
dwarf those of Muslim states such as Pakistan, Bangladesh, Turkey and Egypt.
And there are also 55 colleges and professional institutions offering education
in Islamic finance in Britain – more than anywhere else in the world.
God
is the Most Just, so the guidance He gives to mankind must be just and fair
also. Islamic system is for all humanity and not just the Muslim. In this case,
is to achieve ideal society economically.
Aria.
Source:
btymes.com.my
islamicbanking.blogsome.com
dailymail.co.uk
the Noble Quran.
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