Islamic and Sharia Finance

Blog for Financial article

Selasa, 23 Agustus 2016

Islamic Finance: Chance or Risk

Durham, United Kingdom- Islamic banking, indicating a rejection of flowers, an important industry in the past four decades. One inevitable question whether increasing presence discourages Muslims from various Western standards and values, creating separate financial settlements. Alternative view asserts that with an increasing number of people in the West are not satisfied or skeptical about banking services they receive, as racketeers banks or even immoral, the emergence of Islamic banking with a different morality with Islam generates more positive expressions.

Many residents of the West Bank Islamic finance is a sense of curiosity, maybe even business opportunity, they rarely look at them as a threat comparable to Islamic extremism. In fact, Islamic banking finance and can be considered as the soft side of Islam, which lends itself to dialogue between Muslims and the West.

Retail financial institutions of Islam, including Islamic Bank of Britain, and the European Investment Bank welarba Bank on Wednesday in California, now has a permanent upright in a number of Western countries. Moreover, banks, international lenders, including Citibank, HSBC, Deutsche Bank and UBS in Switzerland, each offering Islamic deposits and financial facilities that comply with the provisions of the Islamic Sharia.

There's a lot of dialogue going on between Western banks who work in these establishments and Islamic experts who suggested what to and what not. This dialogue, where is the Islamic solidarity companies increasing activity, characteristics that it does not adhere to the interest created characters of traditional bonds, shareholders in the Fund and pay premiums that policyholders cannot be made into one, which could lead to the first party of exploiting the misfortune.

Because Sharia is divine principles, aonivirsial, national law does not require leading international law offices also involve himself in Islamic Affairs, banking and finance, contracts are only placed under the umbrella of the law in the United Kingdom or the United States, taking into account their compatibility with Sharia law. In fact, the main task of legitimate Committee members serve "Board" of Islamic banks and Islamic traditional provides products to ensure that new contracts in accordance with Islamic principles, and if not, to dialogue with lawyers regarding modification and redesign.

Faced with the aspirations of many Islamist divine Islamic law supersedes man made laws, and maybe even the world institution under the authority of the Caliph of all people, Muslims and non-Muslims, live. It is not surprising that these aspirations are most non-Muslims, and even many Muslims, because it doesn't give you the option.

Islamic banking and finance may determine the direction of the future: feet wide, instead of being limited. While each institution have its own sharia board compatibility with Islamic law is actually a private party, not only in national legal affairs. In fact, "Shariah Board" have opinion-sharia themselves, and hence further expanded choice in the market of religious ideas. Religion, and thrive under conditions of perfect competition, and that Islam is not an exception, while if the nationalization, following her soon will become alienated.

That can be considered "Islamic Republic of Iran", for example, encourages the development of Islamic banking and finance. There, he met all the Sharia banking laws regarding usury-free banking which was enacted in 1983. The Bank therefore had no choice but to use the system of Islamic law. But State-owned banks and enjoys little autonomy, even in decisions regarding products and financial deposits. It's as if they have Sharia committees, and the reason for it is not necessary that legislation to ensure compliance with Islamic law in any circumstance.

The result was the development of the banking sector run slow, and finance at least there, and most people in Iran do not have a bank account. On the contrary, in the Arabian Gulf, in Malaysia, interesting products to introduce Islamic banks and conventional banks competitive, and the number of the customer who is still growing. Al Rajhi Bank Saudi Arabia became a retail bank, and scope of services and delivery channels 


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