Islamic banking/financial system

Hard Rock Moslem

I'm your brother
I received following e-mail yesterday:

Quote:

L'Osservatore Romano, a daily newspaper in the Vatican regarded as the mouthpiece of the Pope, has endorsed the values of Shari’ah-compliant finance as a solution to the problems in the world of conventional, interest-based finance. ‘The ethical principles on which Islamic finance is based may bring banks closer to their clients and to the true spirit which should mark every financial service,’ said L’Osservatore Romano.
The article also quoted a fixed income specialist from Abaxbank Spa, the Italian investment bank of Credem Group, as saying: ‘Western banks could use tools such as the Islamic bonds, known as sukuk, as collateral’.
Sukuk instruments have become very popular asset class in Islamic financial circles in the last 8 years and have enormous potential of growth.

Institute is organising its 2nd Annual Sukuk workshop which will discuss
Most popular Shari’ah-complaint contracts used in Sukuk structuring
Issues arising in structuring Sukuk transactions, with the help of case studies
How Sukuk may be used for project financing
Process of Shari’ah compliance certification from the Shari’ah boards
Important points of AAOIFI's standards on Sukuk
Taxation issues for UK based Sukuk issuers and investors

This email is sent from:
Institute of Islamic Banking and Insurance
12-14 Barkat House
116-118 Finchley Road
London, NW3 5HT
United Kingdom


Unquote

Recently I listened to speech by a CEO from a top international bank who acknowledged Islamic banking survived the scare of global credit crunch because it is "more ethical and transparent with clear under lining". The CEO given her opinion when asked by one of the audience that Islamic banking is the way forward.
 

Hard Rock Moslem

I'm your brother
You have to be careful about Islamic banks. Attaching the word 'Islamic' to a bank does not make it Islamic. You'd have to find out how exactly they operate concerning loans, interest, deposits, etc.

The main point is that, to be a bank in the Western nations, the bank has to abide by strict decrees that involve haram (usury, etc).

I totally agree with you.
 
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