What is Islamic Banking System? (Shariah Banking - Halal Banking) and How Does it Work? AIMS UK
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- Опубліковано 7 вер 2024
- Islamic banking is a system of banking that is based on the principles of Islamic law (sharia). Sharia prohibits the charging of interest, which is known as riba. Instead, Islamic banks offer products that comply with sharia and seek to promote economic justice. Some of the key features of Islamic banking include profit-sharing, risk-sharing, and asset-backed financing. In recent years, there has been a growing interest in Islamic banking around the world, with many conventional banks now offering Islamic products. However, some critics argue that Islamic banking does not actually follow Sharia principles and that it is simply a way to attract Muslim customers. Nonetheless, there is no doubt that Islamic banking is a rapidly growing industry with immense potential.
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I'm not Muslims and I don't know about finance, but I kinda like the idea behind this. Why more people don't adopt this, when there are literal banks offering this is beyond me.
Cuz of pressure from world banks...they can't make profit if people follow this.
it is not adopted because it is against the interest of zionists and greedy capitalists!
Because Zionist bankers want to control over the people
Peace be with you... The real reason why Islamic banking is putting off is because Non-Islamic banks wants to make profit on the commodity they are selling which is money... Sometimes good people make wrong choices & Islamic banking cushions that choice for all parties included in this transaction... I am also new at this these financial terminologies compare to my ancestors...
@@jonnovember2136are you working in the islamic bank sector ? Would love to have a chat with you
Thank you for covering this.
May Allah send infinite peace and blessings upon Prophet Muhammad(Peace Be Upon Him) and His family and His friends. Ameen sum ameen
Islam is the fastest growing religion in the world . A true monotheistic religion that teaches peace and tolerance
haha a religion that promote apostate if they want to leave islam
@chuayeongwei3019 wrong. In the Quran which is the biggest source in Islam says there is no compulsion in religion. So don't promote lies pls
@@chuayeongwei3019 do you not understand English grammar? Apostasy means to leave
@@halimahirsi6049 how am i wrong? Please dont taqiyya me. 5:33, 9:5, 47:4-9, just to mention a few only. =)
I think most people would prefer Islamic Banking. It seems much fairer.
If that was the case, would we see this system everywhere? 🤔
@@Makeitgreat1 it's available in Malaysia
My country claims to be 100% Islamic but only opened an Islamic Banking system 10 years ago
@@Makeitgreat1 Why should that be the case? Are you assuming that people will automatically go with the most fair options with everything? That seems naive to me, especially in the case of banking and economics, where money is of primary concern
@@Makeitgreat1 it's everywhere in Islamic world
Allah knows what's best for his creation❤
lmao
If only we have this system, fiscal crisis will never happen.
that is correct but on the flip side people's wealth cant grow as insanely as they do under conventional loan.
But on the flipside to that the poor will not get poorer. Because there is no interest to pay back
@@pepelepew1227 that unchecked growth is what causes the boom and bust cycle. I'm not even Muslim but this system seems much more humanitarian than the current conventual banks
@@cnppreactorno.4965 they are pretty much the same risk-reward wise. banks can and have structured loans similar to shariah according to customer's risk tolerance.
@@azizabdiwali3364 so untrue. People in developed countries are not ''poorer''. The rich get richer and the poor get richer. Poor people in developed countries have cars and houses, poor people in poor countries barely afford the minimum sufficient. If Islamic banking promoted growth, Islamic countries would be the richest in the world.
So, the rich don't grow, the poor don't grow either. Income disparity is way higher in countries with islamic banking systems.
Prophet Muhammad (PBUH) himself was a great trader and relatively rich entrepreneur. He understood every part of how the successful business should run, how to treat customer fairly and honest, how circulation of money is important for the economy and how the money supply (in this case is banking system) itself should be managed fairly, honest and win-win cooperation for both parties (lenders and borrowers)
His goal is not getting rich, but rather using his richness to build the great economic system for all people and distributing wealth by trade and value added business (not by compulsory taxes or something like that)
I am not that knowladgable about islam but i heard his wife was the rich one?
I am not that knowladgable about islam but i heard his wife was the rich one?
So many videos on this topic have comments disabled, disappointed, sometimes I like the discussion more than the video
One more thing banks can only give loans to equal or less than what their savings deposit are or equity money they raise via shareholding. Amount of loans will not exceed more than that it is a strict rule in islamic banking because printing money out of nowhere leads to inflation which is making poor people more poor.
This system' wont bring big money, but it Will bring good money. It Will be good for economy macro, cause interest is one of the reason for inflation
I get it. No market based "variable interest", no predatory lending/shark loans (in theory at least). The bank only profits if the interested parties prosper and additional transparency and simplicity when transaction takes place.
Now, what happens to fractional Reserve banking? Does it disappear altogether? And what happens to repossessions obtained by default loans?
Fractional reserve is an affront to Islamic banking. You can not hold a lien on someone for money you pretend to have, or lend in theory only.
Islamic banking can't be sustainable its only good if bank wants to do charity otherwise it is impposible to generate profit out of it
What do you mean by market based interest? and how does replace it?
@@akashagarwal2404 why is that?
@@akashagarwal2404 on the long term no. IF the people knows where their money is being used the people who want to borrow the money would actually have to convince them quite logically and also being transparent .People would actually learn how to do business and be more aware of where the money should be spend on .
Ассалому алейкум менин мусулман бир туугандарым, сиздерден рамазан айында суранарым кимдин мумкунчулугу болсо АЛЛАХ жолуна кайрымдуулук кылсаныздар
The industry has more than doubled in size since 2006
Sharī‘ah-complaint assets rose by 8.85% from US$ 822 billion in 2009 to US$ 895 billion in 2010
By end of 2011, total estimate of Sharī'ah-compliant assets was US$ 1.3 trillion (Islamic Banks: US$ 1.75 trillion by 2018 (IFSB).
Rapid growth experienced in the Gulf Cooperation Council (GCC) countries over the last decade
Growth and expansion of Islamic finance industry continued at the time of global financial crisis
best banking and finance system
Islamic Finance is highly depending on the production than lending or borrowing money and get intrest rate from the money which make the rich people more rich and the poor people more poor..
The rich people will stay lend money and making wealth, while the poor people borrow and refune the main amound with interest rate...
This could be more precise, like, what percentage of the benefits do the banks or redistribute to lenders.
This would be very important, because, if they keep even a little too much, this will deprive the rest of the economy that needs to continue to function, since no new money is created like in the other banking system. Not that the same thing wouldn't happen overtime there but in a different way..
But the value of money increases constantly while other economies print more money but decrease the value
Nice Video
May Allah give more success
@Utkarsh Deo Please respect others religion we are also respecting so we except the same
Enjoyed this
Can I say that Islamic banking is similar to investing in Halal stocks in the share market ? There also involves the benefit sharing or loss sharing whatever the company makes by business.
I am being forced to take a student loan out by a family member and I cant say no, i dont know what to do i even explained to them it is haram and they dont care..... I dont know what to do its been stressing me out and I havent ate for 2 days. Ya allah help me
Return it...
Leave the house
Assalamoalaikum please don't stop eating it is a blessing from Allah,do your best whatever is in your hands and have patience I will pray for you may Allah ease your problem you're a gem
Leave the house man depend on Allah &start your own business.
May Allah make it easy for you.
university is a scam I wasted 4 years of my life to learn outdated and useless information that I could have easily got from the internet for free my advice to you don't take that loan no matter what your family members say and don't go to university unless you want to be a Doctor, an Engineer or a Scientist other than that it's a waste of time and money
Surah 2 Baqarah ((بَقَرَةً) ) - 2
يٰٓاَيُّهَا الَّذِيْنَ اٰمَنُوْٓا اِذَا تَدَايَنْتُمْ بِدَيْنٍ اِلٰٓى اَجَلٍ مُّسَمًّى فَاكْتُبُوْهُۗ وَلْيَكْتُبْ بَّيْنَكُمْ كَاتِبٌۢ بِالْعَدْلِۖ وَلَا يَأْبَ كَاتِبٌ اَنْ يَّكْتُبَ كَمَا عَلَّمَهُ اللّٰهُ فَلْيَكْتُبْۚ وَلْيُمْلِلِ الَّذِيْ عَلَيْهِ الْحَقُّ وَلْيَتَّقِ اللّٰهَ رَبَّهٗ وَلَا يَبْخَسْ مِنْهُ شَيْـًٔاۗ فَاِنْ كَانَ الَّذِيْ عَلَيْهِ الْحَقُّ سَفِيْهًا اَوْ ضَعِيْفًا اَوْ لَا يَسْتَطِيْعُ اَنْ يُّمِلَّ هُوَ فَلْيُمْلِلْ وَلِيُّهٗ بِالْعَدْلِۗ وَاسْتَشْهِدُوْا شَهِيْدَيْنِ مِنْ رِّجَالِكُمْۚ فَاِنْ لَّمْ يَكُوْنَا رَجُلَيْنِ فَرَجُلٌ وَّامْرَاَتٰنِ مِمَّنْ تَرْضَوْنَ مِنَ الشُّهَدَۤاءِ اَنْ تَضِلَّ اِحْدٰىهُمَا فَتُذَكِّرَ اِحْدٰىهُمَا الْاُخْرٰىۗ وَلَا يَأْبَ الشُّهَدَۤاءُ اِذَا مَا دُعُوْا ۗ وَلَا تَسْـَٔمُوْٓا اَنْ تَكْتُبُوْهُ صَغِيْرًا اَوْ كَبِيْرًا اِلٰٓى اَجَلِهٖۗ ذٰلِكُمْ اَقْسَطُ عِنْدَ اللّٰهِ وَاَقْوَمُ لِلشَّهَادَةِ وَاَدْنٰىٓ اَلَّا تَرْتَابُوْٓا اِلَّآ اَنْ تَكُوْنَ تِجَارَةً حَاضِرَةً تُدِيْرُوْنَهَا بَيْنَكُمْ فَلَيْسَ عَلَيْكُمْ جُنَاحٌ اَلَّا تَكْتُبُوْهَاۗ وَاَشْهِدُوْٓا اِذَا تَبَايَعْتُمْ ۖ وَلَا يُضَاۤرَّ كَاتِبٌ وَّلَا شَهِيْدٌ ەۗ وَاِنْ تَفْعَلُوْا فَاِنَّهٗ فُسُوْقٌۢ بِكُمْ ۗ وَاتَّقُوا اللّٰهَ ۗ وَيُعَلِّمُكُمُ اللّٰهُ ۗ وَاللّٰهُ بِكُلِّ شَيْءٍ عَلِيْمٌ
wahai orang orang yang beriman,
apabila kamu melakukan urusan
hutang piutang untuk suatu waktu
yang telah di tentukan
hendaklah kamu mencatatkannya.
dan hendaklah seorang
penulis (كَاتِبٌۢ)
di antara kamu
mencatatkannya (فَلْيَكْتُبْۚ)
dengan benar. dan janganlah
penulis (فَلْيَكْتُبْۚ)
menolak untuk
mencatat (يَّكْتُبَ)
sebagaimana Allah telah
mengajarkan kepadanya,
maka hendaklah dia
mencatatkannya (فَلْيَكْتُبْۚ)
dan hendaklah orang yang
berhutang itu yang menetapkan
dan hendaklah dia bertakwa kepada Allah, Rabbnya dan janganlah dia mengurangkan sedikitpun daripadanya.
jika yang berhutang itu
seorang yang kurang akalnya
atau lemah dan tidak mampu
menetapkan (يُّمِلَّ)
sendiri,
maka hendaklah walinya yang
menetapkan (وَلْيُمْلِلِ)
dengan kebenaran (الْحَقُّ)
dan bersaksikanlah dengan
dua orang saksi lelaki (رِّجَالِكُمْۚ)
di antara kamu. jika tidak ada
dua orang lelaki (رِّجَالِكُمْۚ)
maka di benarkan
seorang lelaki dan dua wanita
(فَرَجُلٌ وَّامْرَاَتٰنِ )
di antara mereka yang kamu bersetuju
untuk mereka menjadi saksi
agar jika yang salah seorang lupa,
maka ada yang seorang lagi
untuk memberi peringatan
dan janganlah saksi saksi itu
menolak apabila mereka di panggil
dan janganlah kamu bosan
mencatatkannya (فَلْيَكْتُبْۚ)
untuk batas waktunya yang telah
di tetapkan sama ada
jumlahnya kecil ataupun besar.
kerana yang demikian itu,
adalah lebih adil di sisi Allah,
dan dapat
menguatkan penyaksian (وَاَقْوَمُ لِلشَّهَادَةِ )
dan tidak mendekatkan kamu
kepada rasa ragu ragu
kecuali jika perkara itu merupakan
urusan perdagangan secara tunai
yang kamu jalankan di antara kamu,
maka tidak ada dosa bagi kamu
jika kamu tidak mencatatkannya
dan ambillah saksi apabila
kamu berjual beli, dan janganlah
penulis (كَاتِبٌۢ)
di persulitkan dan begitu juga dengan
saksi (شَهِيْدٌ)
jika kamu melakukan sedemikian,
maka sungguh, cara itu merupakan
suatu kefasikan kepada kamu.
dan bertakwalah kepada Allah,
Allah memberikan pengajaran kepadamu, dan Allah Maha Mengetahui segala sesuatu.
2:282
Read it and weep
salaam
thank you for covering this.
Time value of Money is very important in the present world....!!! which is core of Conventional Banking System...!!!
Convention Banking: You want a car/house, bank loans you money, you buy car/house & pay back loan plus interest.
Islamic Banking: You want a car/house, bank buys car/house, sells it to you at a profit, you pay back bank in easy monthly payments. Many times, bank will also charge you rent on the car/house until you've paid the bank in full.
The difference is mostly semantics, either way the bank profits. Is it gluing feathers on a pig & calling it a chicken 🤔
No , it's just pigs flying
The second one doesn't sound islamic it sound someone scaming you, in Islam if they loned you the money then it is yours and you can do whatever you want with it .
@@lightingflow4203 That's not a loan, that's a gift.
@@darkgalaxy5548 you can do whatever you want with it mean you can spend it as you want if the bank loaned you 200k dollar they have no right to tell you how to spend it, but you still have pay it back, so your example of the car and house doesn't make any sense?.
For example you take a loan of 60k to buy a car , then you go to car dealership you buy it, that car is yours not for the bank , why would the bank be there to begin with.
@@lightingflow4203 That type of loan doesn't exist. You will never find a bank that will give you a loan without a specific purpose (unless you want to include credit card debt). Also no bank will give you an interest free loan.
Amazing looking for more vedios like this ❤
Wonderful video, thanks.
I will prefer Islamic banking system.
Now I understand the true reason for the rift between Islam and Judaism
Why invest in Kenya? Name eric
What happens to the borrower if they can't pay on an islamic bank based mortgage? How are the penalties different than normal banks?
I would assume if they can't pay back , the property will get sold and the amount from the sale will be spilt according to percentage , diminishing contact where u start owning percentages as you pay .
Fun part about this is, say the contact is canceled you will still get a fair amount, this is because the shareholders and depositors stand to loose if they just sell the house to cover their own share this is what the conventional banks do , vs isl
They don't stand to loose , I mean they basically can't do that and if they do they will loose money because they still have to give you your percentage
I knew this concept of no interest but always thought how does this system work without profit even if there were no interest to the depositor how do they pay salary and maintainence......this can only work with subsidies BUSINESS BENEFITS is more like a grammer LOOPHOLE of paying interest without paying interest as they might not approve future loans if business does not give benefits to bank.
Thanks, its insightful
Amazing bro like it
This is silly. Islamic banking just sounds like interest-based banking with extra steps.
no it's not did you even watch the video?
Inshalla! Thanx so much! Saved my life.
Just out of curosity how would it work in case of home loans??
How would they calculate if the purchaser has made any profit or not ?
the bank would by the house then sell it more expensive in installment, however the bank require for a garunteer like another person who also has a stable income to agree to bay the installment if the original buyer couldn't, sometimes for a large mount of mony the bank require more than one graunteer
If Islamic Banks are taking part of profit earned by the lenders then hiw that loan will be intrest free.. this concept challenge the core values of Sharia which clearly states that any kind of transaction in which you are making money by lending money is Haram.
They are partnering up not just giving loans
So if they is a profit or loss it will shared
So the business gives the bank benefits. Sounds very similar to paying interest to a bank over a loan. The procedure is simply made more circuitous to hide the principle of paying usury.
Actually you forgot about inflation.
@@thisismacom3723
Loans should be given without expecting any repayment.
@@XavierY828 But as times goes on, the money will be inflated because population is booming and creating more demand. Bank won't making any profit if they just giving up loan without expecting either interest or profit to actually paid the price of the next inflation. And since this inflation effect on the asset, the islamic will use money as measuring tool for value instead of an asset to buy the property. And the top secret basic of the islamic bank profut is on you. If you are very rich, the share of profit from you as you pay for the installment will be taken and the poor will be sharing lesser profit shares, so it balanced out eachother. It's like a working communist bank.
@@thisismacom3723
Banks shouldn’t try to make a profit. Nobody should try to make a profit on money. That is why riba is banned. Our whole global banking system shouldn’t exist.
@@XavierY828 Look, not everybody have money, bank exist to maintain the industrial society by using the sharing profit to invest in suitable business, that's why Islam managed to get into Islamic Golden Age. By taking another person profit to be shared to the poorer one, so the rich can enjoy better life in the afterlife and the poor become better in normal life. While also using the money to get more people into the system while the bank can get the profit by returning the money and kept their investments money.
This system is so beautiful because it's match up with what Quran said, "If you disclose your charitable expenditures, they are good; but if you conceal them and give them to the poor, it is better for you, and He will remove from you some of your misdeeds [thereby]. And Allah, with what you do, is [fully] Acquainted. (Al-Qur'an 2:271)"
In my country Pakistan , Banks claims to be 100% Islamic banks but still they lends loans to the people with interest rate , so are they really islamic ? Please someone answer me
Lots of banks claim to be Islamic and sharia compliant. You should check if it actually is, before taking a loan from such places.
same as in Indonesia lol. don't believe them! they are conventional banks under the guise of sharia to deceive the ummah
no they are not islamic sirf dhoka de rhe hain
Can ANYONE please let us know here WHERE there is a TRUE Islamic bank?
Go to any bank and Ask 😊
@@kalibiznes I'm not going to fly from country to country asking at different banks if they have true Halal financing. But thanks for the suggestion, maybe when you get around to doing so, you can let us know here insha'Allah
@@auntiesemite9295 UAE has one of the best Islamic banks.
@@saisiddhant7516 you do realize that a true Islamic Bank can't charge RIBA/usury/interest.?
@@auntiesemite9295 im Kuwait we have KFH، Warba and Boubyan
I have a question, why would someone lend someone money if he can't have any profit in return? And you can't have insurance or security for your investment in Sharia law, don't these rules discourage or stop muslims to engage in doing big business?
So u just rename the interest to something else and call it islamic?
did u even watch the whole video?
It seems lik we've got some morons around here 😅
The best
we're in the late stage of capitalism anyways
This is called investing. It's what made the west prosper. What I want to take a consumable credit, I want to renovate my house or buy a car?
The sharing of misfortune sounds suspicious i mean lets say i deposit money in an islamic bank and they borrow it to I don't know a restaurant but if that Restaurant fails i lose my money won't I ... I know it is the same under the system in the west but it still sounds very risky ... what can i do in such a situation?
Hi.
You know, I have seen a small form of Islamic bank and I guess that they deposit people's money to the most profitable business as possible. I have heard that some people do it by themselves, I mean they give their money to a merchant that almost always makes benefits in his business...
And There are a large number of merchants in the bank, which reduces the likelihood of the bank's overall loss...
@@ParsaMoradi-rq4rr Sounds good
@@felixbeutin9530 hi felix, mostly they dont lend on that are islamically allowed mostly
Agriculture
Real estates and a few more
The real islamic banking won’t lend your money to someone else without your approval. Because the money is still yours and the bank have no rights to use it. You just pay the fee to the bank for keeping your money safe, transferring, and other fee based services. For the bank to be allowed to use your money is to explicitly asking you to borrow your money. And the bank isn’t allowed to give you interest but it’s okay to give you their fee based services free of charges. There are still other ways but too long to explain them all.
So basically, if I take a loan for business I must give some of my profit to the bank.
And for non business, the bank will buy the car or house and then sell it to me at a higher price.
How funny, trying to bypass your own laws to not charge interest, so you call it with a diff name.
Interest is the profit the bank makes for lending you money, interest = profit , for Islamic banks profit is the fix amount of money you give back to the bank. Fix amount = profit.
Both conventional banks and Islamic banks make profit by lending. There is no real difference.
The only differences is Islamic banks try to be fair and kind and make things less difficult.
the price never changes after the agreement.
The thing is money in islam is seen as a mean not as an asset you can't trade money like you trade an asset and get profit from it you need to invest or work
You assume here that your business succesded and cover the loan + interest from a non islamic bank but what if your business failed to do so what if it failed completely
non Muslim banks still have their money + interest
When a bank buy a car and sell it for a higher price then they are traders in this situation and wherever there are traders there are markets, competition, lower prices ...
Charity is different from Murabah/Mudaraba
In charity loan you repay the same amount you borrowed
Percent of profit is also different from fixed percent over the borrowed money
If you have zero profit or negative non Muslim bank still got their money and interest over it
Good observations, but I'll have to disagree about fair & kind. Islamic banks exist to make a profit. If a customer defaults on an arrangement, the bank will use every means at its disposal to remedy the situation. ie if you can't make your house or car payments, your goods are repossessed.
For the "borrower" the difference between western & islamic banking is academic.
@@darkgalaxy5548 No they aren't made for profit only, yes you can make profit, but the goal is to ensure equitable distribution of income and resources among the participating parties: the bank, the depositors and the entrepreneurs.
@@inthenameofallah8108 Respectfully, we'll have to agree to disagree. Islamic banks say all the right things, but money corrupts everything.
Thanks, very nice vedio, go ahead for more topic
How does the bank make money? Is it from Benefits from loaning money? Isn't that a form of interest but with a different name?
Nope lol
Think about it like this. Bank buys stocks from the person who starts a company. If the company fails, both looses money. If company is successful, both earn money.
@@Driga_ I would call that conditional Interest. Its still interest. The bank still makes money from lending money.
@@thenunujournals But its not fixed like if u lose money u have give it with ineterset to bank to other banks
@@saadbodla3092 Again this is a kind of interest with special conditions, interest in general goes against muslim beliefs so how is this allowed?
what if u buy a car on loan and it has no profit/loss concept
Islamic finance is actually based on profit/loss sharing concept, and it some elements are completely prohibited in Islamic finance; such as Interest (Riba), Gambling (Gharar), etc.
@@AIMSEducationUK u didnt understand my question, like profit/loss does not apply to all type of loans so what happens in that case in islamic finance
@@AndroidAndPCChannel What actually happens is a term coined MURABHA. In murabha a car that costs 100k can be sold to the client for 120k. They deem it HALAL as both parties have agreed to the predetermined contract. Does it make sense to you? Doesn't to me
@@RaheemKhan-ic9ce seems like BS, party also agree on predetermined interest rate on loan, both are same thing
@@AndroidAndPCChannel Exactly
subhanallahi wabihamdihi subhanallahil adzim✨
02:35 Sure, thats a nice location for Spain. Why not?
In england exits some one of islamic banking??
does islamic bank practice fractional reserve?
don't ask this question to economists because you would start a war between them, there are three main theories on how banking works and they all have their camps
excellent question. Fractional Reserve is a two-edged sword and in my opinion is the real problem.
Bro , I'm going to learn Bcom , whose main knowledge is accounting . What do I need to do if I want to go to a future job in a company . Is there any Islamic company in India , Banglore which doesn't deal in Riba ? If yes then please give me the link ?.
Islamic banking does not exist in India
There are trust running with islamic loan other islamic banking .
How would I apply for Islamic banking certificate
We offer several certifications in Islamic Banking and Finance, and they are listed here: aims.education/islamic-banking-and-finance-institute/
If there is whats name plz??
who prepared the necessary paperworks?
who dictate the terms and rules?
peace
Doha who?
It's like share market
But how is the bank paying itself if they can't make any profits from interests?
I don't really understood how they benefit from lending money
simply put the bank make profit if the business that took the loan make profit you should rewatch the video
@@Ashraf-Hrirajust see most richest person in Saudi Arabia he has Islamic Bank without Interest
It is really slow system.... Thats why muslim country doesn't develop quickly as western country... but by the end of day the consumer didn't suffer... There average muslim still able to buy house currently while in the US homelessness and debt become more apparent...
the idea is no one suffer unlike the west where they prioritize growth over the benefits of their own people@@PakChikMirol
They get it from their profits(or possible losses) from their investments.
Conventional banks don't lend out deposits, wrong from the get go.
Very Nice
Subhanallah
I have account in Islamic bank thy are osm excellent
which bank can u help me i want to open an account ...in india
@⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻ Yeah, and the irony is that the Islamic bank in Kannur is run by communists 😁🤣
@⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻ Well, the communists in India talk a lot about secularism and they run the only Islamic bank in India. It's just the irony i pointed out. Now you may decide whether there's a problem in one being communist.
@⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻⸻ In that case you must check the dictionary for secularism. It is the complete separation of religion from all public affairs. Now don't tell me banking and finance are not related to the public. Islamic banking is not only about being interest-free but they strictly follow the rules of Islam in their functioning which cannot be accepted in a secular society like India. Secularism-communism-islamic banking all this cannot go together.
No interest = no slavary.
Salam Aleikum i need some help..I live in the USA and i have citizens bank, i want to change it. ASAP. ive beens suffering and dont have money. recently my account went NEGATIVE and the bank takes $30 every other day. until the negative amount is paid. im crying because i have committed a sin. this is technically a loan. and HARAM. WHY DONT BANKS JUST LOCK the accounts when the money is low. like why dont they just stop the card from working. if the money is low. i want to change my bank. but i am not educated on banks and is there any legit Islamic banks? that i can keep the little money i have in it....
Technically, borrowing money isn't a sin, but lending money with interest is. So you're in the clear.
It didnt explain main thinvs...i hopw someone else ll do better doxumntry.
Aslk
i have a question and this question has not been answered for almost 5 years
Lets say i buy a house for 500,000 out of which i took 50% islamic financing so basically my equity is 250k and bank share is 250k
let say the rent on that is 3000 so i pay rent to the bank as 1500
After 1 year the value of house went down to like 300,000 and let's assume my equity in the house is now 60% and islamic bank is 40%. So as per current market value now the equity distribution is 180k for me and 120k for islamic bank
Now the question is does with varying market condition does islamic bank equity also decreases or it says the same when the contract was signed.
No, the equity stays the same as it was signed in the Contract.
@@MansoorDev I do not know much about this but from the looks of it is you can say yes to his question bc if in the contract they say 40% share even if the house decreases or increases in value it will change am I wrong?
@@muayyedsiraj Look if the contract is signed based on percentage like having 50% share for each party, at that time the price of home is 500k and divide it into 50% for each it becomes 250k.
And later on the valuation changes and it goes to like 300k in total and then each party is having 150k at their part. See the share still stays the same as it was agreed, since valuation was never mentioned then its alright.
But problem is that banks are not that stupid to do such type of contracts just based on percentage or something like that.
In Islam it becomes Halaal is because of the loss & profit thing. If it goes above, your contract is still the same but if it goes in loss, it is still the same.
In Islamic Bank, both profit and loss are allowed to be shared by the Bank and the customer, so it will decrease the value.
Interest? No no no... Benefit? Yeees.
does mortage is required in islamic banking
no
It sounds like an investment bank
More clear : ua-cam.com/video/P_cVuLpD_rs/v-deo.html
Could someone explain this scenario:
In a usual non islamic bank, i want to buy a car, probably i would get a loan, buy car for that money and pay back every month some money. Now if I fail to do so, probably car would be taken away from me plus the money i so far paid won't be returned right?
Now what happens in the same scenario in case of islamic bank?
in a conventional loan, you owe the bank money and the car legally belongs to you but used as a collateral. if the price of the car falls below the amount owed, you still owe the bank money.
in islamic banking, your maximum loss is only the amount of money paid as the banks owns/co-own the car. you can go broke but not bankrupt.
in shariah, the payments are known and floating interests are not allowed.
disclaimer: im not a practitioner because im a non-muslim
@@pepelepew1227 u r not a practitioner yet u know much, i m amazed
@@nowan8401 why are you amazed? all products have pluses and minuses in accordance to risk-reward.
maybe because you think i believe everything i see in the papers? nah i know bias when i see one.
@@pepelepew1227 yo, that wasnt a sarcasm i genuinely feel amazed, u know im borned muslim but dont know much abou my religion yet another.
that's it, im just envy of ur knowledge
islamic bankinig system will not make you bankrupt, it' came from god but the conventional will(make rich more rich, poor more poorer)...
you do realise you marked France when you said "Spain" rights?
This doesn't make sense... Wouldn't that make the banks extremely strict with whom they make business with? Why would they give the average person or a company in debt loans? Seems more like charity organizations than banks.
I mean this bank system is more fair than the normal bank system . I mean it's not necessary to strict with whomever they had business with they could loan money to person if there is insurance that this money will come back for example they could take some of his assets as insurance In order to deal happens. And also I saw some islamic banks do some background checks on the person to see if he is a truth worthy man in order to loan the money to him. The normal bank system doesn't give sh*t about your condition or whether you will pay the loan with interest or not they want to put a debt in your back and waiting for you to struggle in the rest of your life to pay your debt which you won't of course. Islamic banking system is more humane and more fair if you ask me .
I knew this concept of no interest but always thought how does this system work without profit even if there were no interest to the depositor how do they pay salary and maintainence......this can only work with subsidies BUSINESS BENEFITS is more like a grammer LOOPHOLE of paying interest without paying interest as they might not approve future loans if business does not give benefits to bank.
@@hornerfarah2282 Companies always have risk and without colleterial they will not lend to these companies i mean netflix or spacex was a laughing stock 15 years ago a bank with this risk taking issues will not lend to volatile companies which might just reduce he economical sucess of that region.....concept wise like communism it seems admirable but practically it does not seem feasible without subsidaries
@@anandisrocking007 it's not interest. If you buy something at 10$ and sell it at 12$ does it mean you earned 2$ on interest?
@@inthenameofallah8108 they are giving the loan and taking back the loan along with business benefits/donation which is technically a word play of interest.
I still dont understand how exactly bank makes money with no interest....
Business gives his profit after he take money from a bank . If he can’t get make money. He will pay the same money without additional money.
You find a house you want to buy, the bank buys the house, then sells it to you at a higher price (with convenient monthly payments).
@@darkgalaxy5548 ahh...that explains it
Also lease, you want to buy a car.. instead the banks buy the car for you and rent the car to you for certain years.. u can do that in Fiat money as well, also for personal finance (personal loan in conventional) some islamic banking Rent you lets say 10000 dollars but u rentors pays montly rent payment for the money u rent, u can think as Fiat money has no value unlike gold but as Fiat money just another man made comodity like car or a phone.. so u can technically rent the money from the bank, rentors just need to pay monthly rental payments for the fiat money u rent. aha..
There is many way but mostly Bank work like investor you share both profits and loss.
You are saying shariya law. Meaning law law. Sharia means law. Instwad you can say Islamic law.
I want to do CIB course can you guide me?
Bank of japan 10
👏👍
Islamic banking is worst idea for economy boast ....it's outdated now by the time traditional pattern should change it with time
if i want work in a bank, is it haram?
Yes, working in a Conventional Bank is Haram. There is a clear Hadith of Prophet Mohammed PBUH from Jabir (RA):
The Prophet, may cursed the receiver and the payer of interest, the one who records it and the two witnesses to the transaction and said: "They are all alike [in guilt]."
Reference: Muslim, Kitab al-Musaqat, Bab la'ni akili al-riba wa mu'kilihi; also in Tirmidhi and Musnad Ahmad
Looks like a scam.
Rather we say it secular modified banking system for Muslims... 🤣🤣
Bruh
You do realize Islamic banking came first..