[Thoughts]

The steady rise of Islamic finance


The banking crisis was avoidable, says Islamic scholar Sheikh Hussain Hussan



By Emily Buchanan and Bhasker Solanki
BBC News



London has become one of the biggest centres for Islamic finance in the world, with five Islamic banks, and many others in the high street offering Islamic financial products, or "windows" as they are known.

The growth of Islamic finance has been an unexpected outcome of the attacks on the World Trade Center of 11 September 2001.

Islamic finance is based on rules from Islam's holy texts - the Koran. Scholars claim the fundamental difference to conventional banking is that Islamic finance is more ethical.

First it bans any form of "riba" or interest, preventing consumers being exploited by high rates of borrowing.

Read the full story here...
http://news.bbc.co.u...ess/8270490.stm

[winston1972]

I could see people in the US being interested in these products in principal.

[NewsJunky]

Thoughts, on 03 November 2009 - 12:32 PM, said:

The steady rise of Islamic finance


The banking crisis was avoidable, says Islamic scholar Sheikh Hussain Hussan



By Emily Buchanan and Bhasker Solanki
BBC News



London has become one of the biggest centres for Islamic finance in the world, with five Islamic banks, and many others in the high street offering Islamic financial products, or "windows" as they are known.

The growth of Islamic finance has been an unexpected outcome of the attacks on the World Trade Center of 11 September 2001.

Islamic finance is based on rules from Islam's holy texts - the Koran. Scholars claim the fundamental difference to conventional banking is that Islamic finance is more ethical.

First it bans any form of "riba" or interest, preventing consumers being exploited by high rates of borrowing.

Read the full story here...
http://news.bbc.co.u...ess/8270490.stm

Wonder if they ban women from borrowing or maybe they just have to wear Berkas if they come within a mile of the bank.

[adult.]

NewsJunky, on 03 November 2009 - 05:22 PM, said:

Wonder if they ban women from borrowing or maybe they just have to wear Berkas if they come within a mile of the bank.

And as long as we're being ignorant, they probably blow up the houses people live in if they default.

[Lots To Do]

The difference between Interest and Rent is a mater of semantics. The bank makes money on the loan, so it really doesn't matter what you call it. "Riba" is commonly used to indicate a usury arrangement, and is illegal in most countries including the US. The same ownership arrangement occurs in both instances. If you put 20% down on a house, you own 20% and the bank owns 80%. Instead of paying a portion of the principal and say 6% interest, you will pay the same portion of the principal and "rent" equal to 6% interest. Islamic banking arrangements generally do avoid the borrower being "up side down", as that is considered a usury arrangement. The loans are written so that it is improbable that you could owe more than a product is worth.

[NewsJunky]

adult., on 03 November 2009 - 06:05 PM, said:

And as long as we're being ignorant, they probably blow up the houses people live in if they default.

I thought you called yourself an Adult. The name calling isn't necessay.