Islamic Finance

Islamic finance is flourishing even in a time of economic turmoil in the world. And, more and more people are taking notice. Recently, many articles have been written by mainstream publications highlighting the success of Islamic banking and the need for the world to learn from this financial model.

For Muslims across the globe, Islamic banking is not simply a financially attractive alternative. Rather, it is a conscious choice based on the commandments laid down by God in the Quran, the holy book of Islam. A fundamental difference between conventional banking and Islamic banking is that the latter does not charge interest. The Quran expressly forbids transacting in interest in several places.

At one point, God says, “God has allowed trade and forbidden usury. Whoever, on receiving God’s warning, stops taking usury may keep his past gains–– God will be his judge–– but whoever goes back to usury will be an inhabitant of the Fire, there to remain.” [2:276]

Interestingly, Judaism and Christianity also prohibit usury. For instance, the Bible states, “Do not charge your brother interest, whether on money or food or anything else that may earn interest.” (Deut. 23:19) Yet, Islam is the only faith which maintains this prohibition originally observed by Christians and Jews.

“People think the Islamic [financial] system is based on faith, but it’s based on justice. The system is based on justice for the two parties and how you get to justice is extracted from the Islamic faith,” says Aly Khorshid, an Islamic finance scholar who writes for Islamic Banking and Finance magazine.

 

Islamic Finance

Islamic Banks: Sailing Smoothly in Troubled Waters

Raja Teh: The West could learn a lot from the principles of Islamic financial practice

David Cameron to unveil plans for £200m Islamic bond

Islamic Banks, Stuffed with Cash, Explore Partnerships in West

2 Comments

  1. Wayn Braford says:

    Are You In Need Of A Private Or Business Loans At 2% Rate For

    Various Purposes? If Yes; Contact us with this details below

    take note we give out from $20,000.00USD to 10million USD
    Full Name:
    Amount Needed:
    Duration:
    Country
    Cell No:
    Sex:
    contact us via email fasterloanservice@gmail.com
    Best Regards
    Mr.Marsha Goodman

  2. Wayn Braford says:

    My name is Mrs. ivy. I live in singapore
    and i am a happy woman today? and i
    told my self that any lender that rescue my
    family from our poor situation, i will refer
    any person that is looking for loan to him,
    he gave me happiness to me and my family, i
    was in need of a loan of $250,000.00 to
    start my life all over as i am a single
    mother with 3 kids I met this honest and GOD
    fearing man loan lender that help me with a
    loan of $250,000.00 U.S. Dollar, he is a GOD
    fearing man, if you are in need of loan and
    you will pay back the loan please contact
    him tell him that is Mrs. ivy Roland that
    refer you to him. contact Mr. Marsha Goodman
    via email: fasterloanservice@gmail.com

Leave a Comment

You must be logged in to post a comment.