View Full Version : Islamic Banking

14th October 2012, 15:34
Hey folks,

Here´s something I didn´t know, which gives a new perspective over this whole war against Islamic countries issue.

The Islam banking system, the Shariah, forbids “riba” or the charging of interest on loans because it could enable the rich to exploit the poor, encourages risk, and creates social and economic disharmony.

Isn´t it interesting?

Since the Muslim community is rapidly growing, and since our whole banking system is based in profiting from interests, it makes sense to think that this whole war is about preventing a fair banking system to emerge.

Here are a few quotes from this (http://en.wikipedia.org/wiki/Islamic_banking) Wikipedia article:

"Sharia prohibits the fixed or floating payment or acceptance of specific interest or fees (known as riba, or usury) for loans of money. Investing in businesses that provide goods or services considered contrary to Islamic principles is also haraam ("sinful and prohibited"). Although these principles have been applied in varying degrees by historical Islamic economies due to lack of Islamic practice, only in the late 20th century were a number of Islamic banks formed to apply these principles to private or semi-private commercial institutions within the Muslim community."

"The word "Riba" means excess, increase or addition, which according to Shariah terminology, implies any excess compensation without due consideration (consideration does not include time value of money). The definition of riba in classical Islamic jurisprudence was "surplus value without counterpart", or "to ensure equivalency in real value", and that "numerical value was immaterial."
Applying interest was acceptable under some circumstances. Currencies that were based on guarantees by a government to honor the stated value (i.e. fiat currency) or based on other materials such as paper or base metals were allowed to have interest applied to them.[10] When base metal currencies were first introduced in the Islamic world, the question of "paying a debt in a higher number of units of this fiat money being riba" was not relevant as the jurists only needed to be concerned with the real value of money (determined by weight only) rather than the numerical value. For example, it was acceptable for a loan of 1000 gold dinars to be paid back as 1050 dinars of equal aggregate weight (i.e., the value in terms of weight had to be same because all makes of coins did not carry exactly similar weight)..."

"In the next two decades interest-free banking attracted more attention, partly because of the political interest it created in Pakistan and partly because of the emergence of young Muslim economists. Works specifically devoted to this subject began to appear in this period. The first such work is that of Muhammad Uzair (1955).[citation needed] Another set of works emerged in the late sixties and early seventies. Abdullah al-Araby (1967), Nejatullah Siddiqi (1961, 1969), al-Najjar (1971) and Baqir al-Sadr (1961, 1974) were the main contributors.[citation needed] j The early 1970s saw institutional involvement. The Conference of the Finance Ministers of the Islamic Countries held in Karachi in 1970, the Egyptian study in 1972, the First International Conference on Islamic Economics in Mecca in 1976, and the International Economic Conference in London in 1977 were the result of such involvement. The involvement of institutions and governments led to the application of theory to practice and resulted in the establishment of the first interest-free banks. The Islamic Development Bank, an inter-governmental bank established in 1975, was born of this process.[11]"



Robert J. Niewiadomski
14th October 2012, 15:58
Yes it is very interesting :) There is more to it than lack of usury. You've probably heard of concept of "hawala" or "hundi"? It is a system of bank less money transfer. Largely uncontrolled by IMF & Co.

Hawala is an informal value transfer system based on the performance and honor of a huge network of money brokers, which are primarily located in the Middle East, North Africa, the Horn of Africa, and South Asia. It is basically a parallel or alternative remittance system that exists or operates outside of, or parallel to traditional banking.

Source: http://en.wikipedia.org/wiki/Hawala

14th October 2012, 16:15
This could explain a lot of things... repression and murder of Muslims in order to promote the NWO banking system

Robert J. Niewiadomski
14th October 2012, 16:21
Oops... i've forgot to put the link to hawala page in WikiPedia. Sorry
Here is the link for your convenience :)

14th October 2012, 18:49
So I guess that if you want to have Islamic banking system here in the west, would it be legal or they would tell us it's against "their" banking rules.??

We need that banking system on this side of the planet now!

14th October 2012, 23:34
This is just another system--- I would be more impressed by it if there were in fact NO rich Muslims taking risks, enjoying the effects of inequality or creating disharmony. I think there are ways around all systems of money handling if you are clever or rich enough. Our own systems probably look fair and equitable on paper. The problem is that all such systems will be administered by some fallible and greedy humans, as well as, hopefully, people of impeccable behaviour.

15th October 2012, 00:55
Remember Libya?

This is before it got blown up...

1. There is no electricity bill in Libya; electricity is free for all its citizens.
2. There is no interest on loans, banks in Libya are state-owned and loans given to all its citizens at zero percent interest by law.
3. Having a home considered a human right in Libya.
4. All newlyweds in Libya receive $60,000 dinar (U.S.$50,000) by the government to buy their first apartment so to help start up the family.
5. Education and medical treatments are free in Libya. Before Gaddafi only 25 percent of Libyans were literate. Today, the figure is 83 percent.
6. Should Libyans want to take up farming career, they would receive farming land, a farming house, equipments, seeds and livestock to kickstart their farms are all for free.
7. If Libyans cannot find the education or medical facilities they need, the government funds them to go abroad, for it is not only paid for, but they get a U.S.$2,300/month for accommodation and car allowance.
8. If a Libyan buys a car, the government subsidizes 50 percent of the price.
9. The price of petrol in Libya is $0.14 per liter.
10. Libya has no external debt and its reserves amounting to $150 billion are now frozen globally.
11. If a Libyan is unable to get employment after graduation the state would pay the average salary of the profession, as if he or she is employed, until employment is found.
12. A portion of every Libyan oil sale is credited directly to the bank accounts of all Libyan citizens.
13. A mother who gives birth to a child receive U.S.$5,000.
14. 40 loaves of bread in Libya costs $0.15.
15. 25 percent of Libyans have a university degree.
16. Gaddafi carried out the world’s largest irrigation project, known as the Great Manmade River project, to make water readily available throughout the desert country.
17 Women’s Rights: Under Gaddafi, gender discrimination was officially banned and the literacy rate for women climbed to 83 per cent. The rights of Black’s were also improved.