Islamic banking

[Mailman]

[quote] Buying a Home

In the near future we aim to introduce a Sharia’a Compliant home-buying facility – a way for you to buy a home without paying interest, and therefore remain true to Sharia’a principles.

Our in-house financial experts are developing this product in conjunction with our Sharia’a Supervisory Committee in order to ensure that it will be fully in accordance with Islamic teaching.[quote]

Well what do you guys reckon...anyone moving their mortgage to the Islamic bank of England to take advantage of 0% interest?

You know I thought this might have been a bit dodgy BUT the only place I feel this is dodgy is how 0% would be incompatible with Englands bloated tax burden!

I guess though we are all fecked as Labour's PC morons will ensure that the Islamic bank is exempt from EU anti-disgrimination laws and will allow these guys to only offer this to those peace loving muslims!

Mailman

[The Lone Gunman]

Its not a 0% thing mate.
It is typical of a number of things with Islam (and other religions). The Koran is sacred until they find it doesnt suit them. Koran says no interest but they have developed methods that obey the words but not the meaning.

From Wikipedia

Principles in Islamic Banking

Islamic banking has the same purpose as conventional banking except that it claims to operate in accordance with the rules of Shariah, known as Fiqh al-Muamalat (Islamic rules on transactions). The basic principle of Islamic banking is the sharing of profit and loss and the prohibition of riba´ (interest). Amongst the common Islamic concepts used in Islamic banking are profit sharing (Mudharabah), safekeeping (Wadiah), joint venture (Musharakah), cost plus (Murabahah) and leasing (Ijarah).

In an Islamic mortgage transaction, instead of loaning the buyer money to purchase the item, a bank might buy the item itself from the seller, and re-sell it to the buyer at a profit, while allowing the buyer to pay the bank in installments. However, the fact that it is profit cannot be made explicit and therefore there are no additional penalties for late payment. In order to protect itself against default, the bank asks for strict collateral. The goods or Land is registered to the name of the buyer from the start of the transaction. This arrangement is called Murabaha. Another approach is Ijara wa Iqtina, which is similar to real estate leasing. Islamic banks handle loans for vehicles in a similar way (selling the vehicle at a higher-than-market price to the debtor and then retaining ownership of the vehicle until the loan is paid).

There are several other approaches used in business deals. Islamic banks lend their money to companies by issuing floating rate interest loans. The floating rate of interest is pegged to the company's individual rate of return. Thus the bank's profit on the loan is equal to a certain percentage of the company's profits. Once the principal amount of the loan is repaid, the profit-sharing arrangement is concluded. This practice is called Musharaka. Further, Mudaraba is venture capital funding of an entrepreneur who provides labor while financing is provided by the bank, so that both profit and risk are shared. Such participatory arrangements between capital and labor reflect the Islamic view that the borrower must not bear all the risk/cost of a failure, as it is Allah who determines that failure, and intends that it fall on all those involved.

Last, Islamic banking is restricted to Islamically acceptable deals, which exclude those involving alcohol, pork, gambling, etc. Thus ethical investing is the only acceptable form of investment, and moral purchasing is encouraged.

Islamic banks have grown recently in the Muslim world but are a very small share of the global banking system. Micro-lending institutions such as Grameen Bank use conventional lending practices, and are popular in some Muslim nations, but are clearly not Islamic banking.

In theory, Islamic banking should be synonymous with full-reserve banking, with banks achieving a 100% reserve ratio [2]. However in practice this is rarely the case [3].

[hyperD]

We had this on here before - I think someone pointed out that once you remove the tabloid kneejerk, it is the banks that are screwing the participants to this scheme. Perhaps someone can back this up as I've got a splitting hangover and if I see a picture of something foul, like Prescott, they'll be diced carrots over the iiyama ProLite...

(bugger, the Lone Gunman beat me to it. Even my fingers are deserting me. Et tu brute. Now I know how liebour are feeling...)

[Mailman]

Damn, I guess that rules me out cause I do like to have a good pork roast every now and then!

However, do you think they would still consider me if I balance that out with the odd beheading of infadels or offering short term lodgings to suicide bombers?

Mailman

[Churchill]

Damn, I guess that rules me out cause I do like to have a good pork roast every now and then!

However, do you think they would still consider me if I balance that out with the odd beheading of infadels or offering short term lodgings to suicide bombers?

Mailman

Your inability to spell may hinder proceedings.

[Mailman]

Your inability to spell may hinder proceedings.

But if I promese to spreed the word of the good book of allah the bank might stil consedir me?

Mailman

[madhippy]

i believe the way it works is something like ... you 'borrow' the amount needed to purchase the house ... you repay this at 0% interest ... but whilst you're repaying the loan, the bank own the house and you pay them a rent ... net effect ... you pay more ...

I believe the roots for the no interest thing are in christianity ... islam got it from there ...

[Sergeant Apone]

I believe the roots for the no interest thing are in christianity ... islam got it from there ...

Correct. It is a theological slight of hand anyway. They are essentially renaming the interest as an "admin fee". The net effect is exactly the same as charging interest, it just isn't called interest. It won't fool God for one second and all mortgaged muslims are on a one-way ticket to hell.

[Mailman]

You reckon thats why the seem more prone to detonating in public places?

Mailman

[Joe Black]

Correct. It is a theological slight of hand anyway. They are essentially renaming the interest as an "admin fee". The net effect is exactly the same as charging interest, it just isn't called interest. It won't fool God for one second and all mortgaged muslims are on a one-way ticket to hell.

Which just goes to show what a load of b*llocks it is with this divine word of God stuff when they're just as happy to twist the rules when it suits.

The only time I'll believe something complies with God's wishes is when he stops by and tells me himself.