What is Islamic Bank ?

[staticPointer]

Asalamu Alikum Warahmatulahi Wabrakatuhu

dear all,


can anyone explains to me tht whats is islamic banking .. i mean, bank is a bank .. then what kind of islamic in banking is using ??? plz explain ...


regards,

waleedShaukat

 

[shad0w]

Asalamu Alikum Warahmatulahi Wabrakatuhu

dear all,


can anyone explains to me tht whats is islamic banking .. i mean, bank is a bank .. then what kind of islamic in banking is using ??? plz explain ...


regards,

waleedShaukat

Sorry but there is nothing Islamic about Banking.

 

[abobobilly]

Bottom line is, Islamic Banking has just the names changed of things. Kaan 1 taraf se pakro, ya doori taraf se ... baat 1 he hay.

Incase of a savings account (under islamic banking), they tell you that they are investing your money in xyz business (which they'll claim to be 'halal') to earn xxx amount, and you will be shared profit or loss out of that. Magically, that never goes in loss. The difference is that they don't pay you a 'fixed' sum of money.

 

[saeedmazhar]

zyada maloomaat tou nahin hai, i've always been weak @ finance; lekin bacha do tareeqon se paida ho sakta hai: baghair nikah k, aur nikah k baad.
ab what's the difference b/w the two, except some words of acceptance b/w the bride & bridegroom?

the point being ... the argument is not as simple as "kaan 1 taraf se pakro ya doosri taraf se"

food for thought!

I heard a scholar say, you should contact the Mufti of the bank, and ask him if the xyz product of the bank is halal or not? If he says yes, then you are not responsible for it, and the burden is on the mufti of the bank.

wAllah Alam!

 

[maxold90]

Bottom line is, Islamic Banking has just the names changed of things. Kaan 1 taraf se pakro, ya doori taraf se ... baat 1 he hay.

Incase of a savings account (under islamic banking), they tell you that they are investing your money in xyz business (which they'll claim to be 'halal') to earn xxx amount, and you will be shared profit or loss out of that. Magically, that never goes in loss. The difference is that they don't pay you a 'fixed' sum of money.

well it actually work on Inter bank offering rate , which slightly shift from profit to loss or loss to profit with time being , but its mostly fix and depend on your economic condition (there is huge calculation upon it , though) beside that this so called Islamic banking , its SPECIALLY for special client of a bank , like when i was in HBL mudaraba , its for HBL (HIGH VALUE) clients only , the difference is of ownership , as ownership will remain in bank hand until and unless the customer pay its total rent = interest . But the periodic payment of Rent is derived from inter bank offering rate . Well there is huge mechanism , and yes its not halal at all , just a defined mechanism or practice you can say to define true Islamic banking which is still in process .

Other then that , there is Islamic securities (bonds, debentures etc) and insurances , even now Islamic credit card , but its all just same securities with Islamic tag on it .

 

[staticPointer]

so, this means islamic bankng is just drami baazi .... balky, banking ka sara environment wasy he chl rha hota h islamic bank mei ...but one thing i heard and asked from meezan bank that k "wo kisi ko sooad pe paise nei dety".. i think am i right or may be wrong ...

 

[staticPointer]

Sorry but there is nothing Islamic about Banking.

awein drami bzi h phr ye ???

 

[gullfounder]

What i know form best of my knowledge is that. Bank keep your money and give loan to bigger clients for bigger interest. once the money is returned the interest they get is share with you.
In So called Islamic Banks. Thing works the same way. They give loan to bigger clients but they don't return interest as in normal banks.

Correct me if i am wrong.

 

[abobobilly]

What i know form best of my knowledge is that. Bank keep your money and give loan to bigger clients for bigger interest. once the money is returned the interest they get is share with you.
In So called Islamic Banks. Thing works the same way. They give loan to bigger clients but they don't return interest as in normal banks.

Correct me if i am wrong.

Islamic Banking operates under "Investment" rules. And the bank tries their best to convince you that they 'invest' your money in halal sources (which doesn't include loaning them their clients). What they "really" do ... is ofcourse still a secret. (Or maybe i am ill informed when it comes to that)

 

[babarali124]

there is no such thing as islamic bank.. A bank can never survive without interest... so saari dramay bazzi hoti hai ... sirf farq yeh hai k sood(interest) apko nhi deinge bs khud hi khainge hahaha.

 

[Lord AvaLon]

Why don't we stay away from something we don't have an iota of knowledge about?
In order to understand the basics of Islamic banking, you should have an idea of conventional banking and the implications on the economic system. Moreover, what is interest and the conditions applied on it such as time and direct profit on money. The profits of conventional banks are dependent on the profit rates provided by State bank which is the banking hub. Its a straight margin which as of last time I checked was 12%. It means no matter what, all the banks will get 12% per anum on the amount deposited in the hub. This amount is then divided among the account holders with respect to the types of account such as PLS, Investment certificates, Fix deposits etc and the rest is the margin which banks keep for themselves.
Other than that, Bank lend the money on a staggering 16% to 18% profit rates which is directly related to the time of submission. the late one gets, the more he has to pay. On the other hand, Islamic banking doesn't encourage interest. They do not claim the interest from State bank but are highly dependent on the credit system whereby they do not lend money directly rather they buy goods and sell it on a fix profit for which loan has been applied for.
It would be pertinent to note that there are several prominent scholars such as Mulana Taqi Usmani making efforts to market this system and make it work since this system discourage concentration of wealth. There are still flaws which these scholars are trying to fix. If you are interested, you can read Islamic Banking which is written by him. There are too many myths attached to this system and investors mainly rely on Current account that it is interest free but you will be surprised to know it is the most profitable venture for any bank. They get straight 12% profit and do not have to pay a single penny to the account holder.

 

[icemaker]

Islamic banks use back door for "interest" that's the difference.

 

[OmMeE]

Asalamu Alikum Warahmatulahi Wabrakatuhu

dear all,


can anyone explains to me tht whats is islamic banking .. i mean, bank is a bank .. then what kind of islamic in banking is using ??? plz explain ...


regards,

waleedShaukat

In simple words, Where the " INTEREST " is called " RENT ". Thats it, nothing else is changed.

 

[HASSANALIRAZA]

Islamic banks use back door for "interest" that's the difference.

i agreed.
Normal Bank: Interst 10%
Islamic Bank: Manafa Inshallah 10%